Terrence Reid Pipenhagen Audit (2023) – A Scam or Legit Broker?

Terrence Reid Pipenhagen  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Terrence Reid Pipenhagen.

BrokerComplaints.com is currently investigating allegations related to Terrence Reid Pipenhagen. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Terrence Pipenhagen

Terrence Reid Pipenhagen is an Investment Adviser. Terrence Reid Pipenhagen’s Central Registration Depository (CRD) number is 716645 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/716645.

Click here to download a Detailed Audit Report for Terrence Reid Pipenhagen.

Terrence Reid Pipenhagen has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of Terrence Reid Pipenhagen’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 8/30/2010
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: COMMODITY FUTURES TRADING COMMISSION
• Allegations: CFTC RELEASE PR5880-10, AUGUST 30, 2010: THE COMMODITY FUTURES TRADING COMMISSION (COMMISSION) ANNOUNCED THE FILING AND SIMULTANEOUS SETTLEMENT OF FRAUD CHARGES AGAINST TERRENCE R. PIPENHAGEN ( ESPONDENT) AND HIS COMPANIES FOR ISSUING FALSE STATEMENTS TO CUSTOMERS TO CONCEAL COMMODITY FUTURES TRADING LOSSES, BY FAILING TO REGISTER AS AN ASSOCIATED PERSON (AP), AND BY FAILING TO COMPLY WITH COMMISSION REGULATORY REQUIREMENTS RELATED TO OPERATING COMMODITY POOLS IN VIOLATION OF SECTIONS 4B(A)(2)(II), 4K(2), 4M(1) AND 4O(1) OF THE COMMODITY EXCHANGE ACT (CEA), 7 U.S.C. u00a7u00a7 6B(A)(2)(II), 6K(2), 6M(1) AND 6O(1) (2006), AND COMMISSION REGULATIONS 4.20 AND 4.21, 17 C.F.R. u00a7u00a7 4.20 AND 4.21 (2009). THEREFORE, THE COMMISSION DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT A PUBLIC ADMINISTRATIVE PROCEEDING BE INSTITUTED TO DETERMINE WHETHER RESPONDENT HAS ENGAGED IN THE VIOLATIONS AS SET FORTH AND TO DETERMINE WHETHER AN ORDER SHOULD BE ISSUED IMPOSING REMEDIAL SANCTIONS. IN ANTICIPATION OF AN ADMINISTRATIVE PROCEEDING, RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT (OFFER), WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. PIPENHAGEN CLAIMED HE COULD PROVIDE CUSTOMERS WITH CONSISTENT GAINS AND ACHIEVE HIGH RETURNS. HOWEVER, HE CONSISTENTLY SUSTAINED TRADING LOSSES AND ULTIMATELY LOST ALL THE CUSTOMERS’ FUNDS, THE ORDER FOUND. FOR EXAMPLE, PIPENHAGEN SENT AN ACCOUNT STATEMENT SHOWING PROFITS OF MORE THAN $10,000, EVEN THOUGH THE TRADING ACCOUNT HAD BEEN CLOSED MONTHS EARLIER AFTER SUSTAINING MORE THAN $75,000 IN LOSSES. EVENTUALLY, PIPENHAGEN’S CUSTOMERS ATTEMPTED TO ACCESS THEIR FUNDS AND DISCOVERED HIS FRAUD. THE COMMISSION FOUND THAT PIPENHAGEN FURTHER VIOLATED FEDERAL COMMODITIES LAW BY FAILING TO REGISTER WITH THE COMMISSION AS AN ASSOCIATED PERSON (AP) OF A COMMODITY POOL OPERATOR (CPO) AND OF A COMMODITY TRADING ADVISOR (CTA) AND BY FAILING TO COMPLY WITH COMMISSION REGULATORY REQUIREMENTS RELATED TO OPERATING COMMODITY POOLS. THE COMMISSION ALSO FOUND THAT PIPENHAGEN OPERATED A COMMODITY FUTURES POOL AND MANAGED INDIVIDUAL COMMODITY FUTURES ACCOUNTS. PIPENHAGEN, THROUGH HIS COMPANIES, DEFRAUDED CUSTOMERS BY SENDING THEM FALSE ACCOUNT STATEMENTS TO CONCEAL TRADING LOSSES AND TO PREVENT CUSTOMERS FROM WITHDRAWING THEIR INVESTMENTS. PIPENHAGEN SOLICITED AT LEAST $450,000 FROM AT LEAST NINE INDIVIDUALS HE KNEW FROM WORKING AS AN INSURANCE AND SECURITIES SALESMAN.
• Resolution: Order
• Sanction Details :: Sanctions: Cease and Desist Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Sanction Details :: Amount: $150,000.00 Sanctions: Prohibition Sanctions: Undertaking

DISCLOSURE 2 – 

• Event Date: 3/14/2008
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: 2006006849601
• DocketNumberAAO: 2006006849601
• Initiated By: FINRA
• Allegations: NASD RULES 2110 AND 3040: RESPONDENT SOLICITED AT LEAST NINE INDIVIDUALS TO INVEST IN COMMODITIES TRADING ACCOUNT CONTROLLED BY HIM AT VARIOUS COMMODITIES FIRMS. HE LOST ALL OF INVESTORS’ FUNDS AND BEGAN SENDING FALSE ACCOUNT STATEMENTS TO THE INVESTORS IN ORDER TO CONCEAL THEIR LOSSES, AND TO PREVENT THEM FROM PULLING OUT THEIR INVESTMENTS BEFORE HE HAD A CHANCE TO RECOVER THEIR LOSSES. SEVEN OF THOSE INVESTMENTS, TOTALING $320,000 WERE MADE AT A TIME WHEN HE WAS ASSOCIATED WITH A FINRA MEMBER FIRM, AND CONSTITUTE PRIVATE SECURITIES TRANSACTIONS. RESPONDENT DID NOT GIVE PRIOR WRITTEN NOTICE OF THE INVESTMENTS TO HIS EMPLOYING MEMBER FIRM.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Bar
• Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

DISCLOSURE 3 – 

• Event Date: 12/9/1998
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: FLORIDA DIVISION OF SECURITIES AND INVESTOR PROTECTION
• Allegations: ON DECEMBER 9, 1998, THE DEPARTMENT ISSUED AN ADMINISTRATIVE COMPLAINT AGAINST RESPONDENTS TRP ADVISORY GROUP, INC. (TRP), ARAGON FINANCIAL SERVICES CORPORATION (ARAGON), CALTON AND ASSOCIATES, INC. (CALTON), TERRANCE PIPENHAGEN (PIPENHAGEN), SCOTT MICHAEL TOBER (TOBER), AND DWAYNE CALTON. THE DEPARTMENT ALLEGES THAT: TRP OPERATED AS A BROKER-DEALER WITHOUT LAWFUL REGISTRATION, ARAGON SOLD UNREGISTERED SECURITIES AND MADE UNSUITABLE RECOMMENDATIONS, CALTON SOLD UNREGISTERED SECURITIES AND FAILED TO PROPERLY SUPERVISE AN AGENT, PIPENHAGEN SOLD UNREGISTERED SECURITIES, SOLD SECURITIES WITHOUT THE BENEFIT OF PROPER REGISTRATION, AND MADE UNSUITABLE RECOMMENDATIONS, TOBER SOLD SECURITIES WITHOUT BEING PROPERLY REGISTERED WITH THE DEPARTMENT, AND DWAYNE CALTON OFFERED FOR SALE OR SOLD UNREGISTERED SECURITIES. THE RESPONDENTS HAVE 21 DAYS TO REQUEST A HEARING TO CONTEST THE DEPARTMENT ALLEGATIONS.
• Resolution: Stipulation and Consent
• Sanction Details :: Sanctions: Monetary/Fine
• Sanction Details :: Amount: $2,000.00
• Sanctions: RESPONDENTS TRP ADVISORY GROUP, INC. AND TERRENCE R. PIPENHAGEN AGREE TO PAY ADMINISTRATIVE COSTS OF $2000. NO FINES WERE LEVIED ONLY ADMINISTRATIVE COSTS WERE IMPOSED.
• Sanction Details: NOT PROVIDED
• Broker Comment: NO ADMITTING OR DENYING OF WRONGDOING. DEPARTMENT FINDS THAT PIPPENHAGEN OPERATED AS AN UNREGISTERED BROKER DEALER.

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• LINCOLN INVESTMENT PLANNING, INC. (CRD#: 519) :: 7/26/2005 – 10/31/2006 :: LONGWOOD, FL
• PLANMEMBER SECURITIES CORPORATION (CRD#: 11869) :: 4/20/2004 – 8/12/2005 :: CARPINTERIA, CA
• JONATHAN ROBERTS FINANCIAL GROUP, INC. (CRD#: 46285) :: 1/17/2001 – 8/18/2003 :: TAMPA, FL
• CALTON & ASSOCIATES, INC. (CRD#: 20999) :: 12/18/1995 – 7/8/1999 :: TAMPA, FL
• ARAGON FINANCIAL SERVICES, INC. (CRD#: 16023) :: 9/17/1990 – 12/31/1995 :: IRVINE, CA
• UR FINANCIAL, INC. (CRD#: 10509) :: 4/10/1986 – 10/25/1989
• SECURITY FIRST FINANCIAL, INC. (CRD#: 6695) :: 12/2/1981 – 10/15/1985
• VOYAGER SECURITIES, INC. (CRD#: 919) :: 10/7/1980 – 3/23/1982

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Terrence Reid Pipenhagen, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report Terrence Pipenhagen

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Terrence Reid Pipenhagen – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (716645) for the broker – Terrence Reid Pipenhagen
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘Ripoff Repairs LLC,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

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