Two former Chattanooga brokers under investigation for fraud
Two former Chattanooga brokers are being investigated for fraud.
James Hugh Brennan III and Douglas Albert Dyer are the owners of Broad Street Ventures, LLC.
Earlier this year, the state securities division filed a cease-and-desist order against the company and the owners alleging that that they had sold unregistered securities, were not registered to sell securities in Tennessee, and had engaged in fraud by failing to disclose the existence of a desist-and-refrain order previously issued in California.
They are also suspected of transferring investors' funds into their personal accounts or those belonging to their wives.
In an emergency action filed in federal court in Chattanooga on July 22, 2016, the U.S. Securities and Exchange Commission (sec) alleges that Brennan and Dyer sold purported shares in eight similarly named companies to more than 240 investors since 2008 without ever registering the stock as they promised and issued an asset freeze on the both men and the company.
The SEC further alleges that Brennan and Dyer continue to solicit investors while touting their securities industry experience and failing to disclose that Brennan was banned from the brokerage industry and Dyer suspended and fined for executing unauthorized transactions in customers' accounts.
The FBI is also assisting in the investigation.
A hearing date is pending late August.
The SEC encourages investors to check the backgrounds of investment professionals before investing their money.
If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial Services Investigations Unit at (615) 741-5900, or to file a complaint online, please visit https://tn.gov/commerce/article/securities-file-a-complaint.