Dennis Haywood II Allegedly made Unsuitable Investments  

Investor Lawsuit Investigation – Dennis Haywood

The White Law Group is investigating potential FINRA arbitration claims involving former financial advisor Dennis “Denny” Haywood, in light of multiple investor complaints and a pending regulatory action.

According to FINRA’s public records (CRD#: 5850275), Haywood was previously registered with Crown Capital Securities, L.P. in Land O’ Lakes, Florida. His Broker Check profile reportedly discloses 12 events, including numerous customer disputes involving alternative investments and a regulatory allegation from the State of Florida.

Dennis Haywood Customer Complaints

Dennis Haywood has reportedly been the subject of at least 10 customer complaints, the majority of which involve recommendations to purchase non-traded REITs, BDCs, and other high-risk alternative investments.

These complaints allege a pattern of unsuitable investment recommendations, negligent supervision, misrepresentations about the risks and liquidity of investments, and failure to perform proper due diligence. In many cases, the customers said they were unaware that the investments carried high fees, long holding periods, or the risk of principal loss.

Several noteworthy complaints include:

• April 2022: Customers alleged that Haywood recommended unsuitable investments and failed to conduct proper due diligence. The claim was settled for $70,000.
• April 2021: Customers alleged a lack of suitability and material misrepresentations regarding the purchase of alternative investments. This claim was resolved with a $75,000 settlement.
• May 2020: A customer alleged they were misled about the projected performance and liquidity of non-traded REITs and BDCs. The case settled for $41,500.
• May 2020: Another investor alleged a violation of fiduciary and suitability obligations regarding the sale of non-traded REITs, BDCs, and a variable annuity. The case was settled for $25,000.
• April 2020: A customer claimed over $400,000 in damages stemming from alleged unsuitable recommendations and lack of due diligence over a two-year period. The case settled for $95,000.

Several cases also included broker comments disputing the claims, though the frequency and consistency of settlements suggest repeated concerns about Haywood’s practices.

A pending complaint filed in April 2024 alleges failure to supervise, breach of fiduciary duty, and unsuitable recommendations of alternative products, with damages sought at $100,000.

In total, Haywood’s reported settlements exceed $600,000.

Risks of Broker Misconduct and Firm Supervision Failures

Broker misconduct can lead to devastating financial losses for unsuspecting investors. Firms that fail to supervise their brokers appropriately may be held liable for resulting damages. Claims involving unsuitable alternative investments and supervisory failures are particularly common in cases involving non-traded REITs, BDCs, and private placements.

Recovery Options for Investors

If you invested with Dennis Haywood and have concerns about your investments, you may be eligible to pursue a claim through FINRA arbitration. The White Law Group is investigating whether Crown Capital Securities failed to adequately supervise Haywood’s investment recommendations.

FINRA Arbitration vs. Class Action – What’s the Difference?

Investor claims are typically resolved through FINRA arbitration, not a class action lawsuit. Unlike class actions, which involve large groups of plaintiffs and smaller average payouts, FINRA arbitration allows investors to pursue claims individually based on their specific circumstances.

FINRA arbitration is often faster and more tailored to each investor’s unique losses and investment profile.

Free Consultation

The White Law Group has successfully handled more than 800 FINRA arbitration claims across the country. If you lost money investing with Dennis Haywood, call our office at 1-888-637-5510 for a free, confidential consultation.

To learn more, visit us at www.whitesecuritieslaw.com.

Frequently Asked Questions (FAQs) – Dennis Haywood

1. What are the allegations involving Dennis Haywood?

Clients have accused Haywood of recommending unsuitable, illiquid investments and failing to conduct proper due diligence. Several complaints allege misrepresentations and misleading statements about investment risks, liquidity, and time horizons.

1. Can I recover losses if I invested with Dennis Haywood?

Yes. If your investments were unsuitable, misleading, or improperly supervised, you may have a right to recovery through a FINRA arbitration claim against Haywood and/or his former firm

3. What is the difference between a FINRA arbitration and a class action?

FINRA arbitration allows individual investors to seek damages tailored to their unique case. It is typically faster and more efficient than a class action, which often results in smaller compensation per investor.