William Pugh, Columbia Capital Securities: Complaints | FINRA Selling Away Suspension
The Financial Industry Regulatory Authority reportedly suspended former Columbia Capital Securities broker William N. Pugh (CRD# 4855771) for 10 months and fined him $10,000 after finding he participated in selling away, helping raise $8 million from investors through an unapproved private securities offering. Investors who purchased the promissory notes at issue may want to speak with a FINRA arbitration attorney about their options. The White Law Group is looking into potential William Pugh complaints on behalf of investors who bought the Oak Quarry Management notes through him while he was registered with Columbia Capital Securities.
Who Is William Pugh?
Pugh, also known professionally as William Nicholas Pugh, first registered as a broker with Charles Schwab & Co., Inc. in 2004, and later worked at Northern Trust Securities, Inc. from 2011 to 2014. He then spent five years at Apriem Advisors before joining Columbia Capital Securities, Inc. (CRD# 146838) in 2021, where he was dually registered as a broker while also serving as an investment adviser representative of Vela Consulting, LLC, an Irvine, California-based RIA he has been affiliated with since 2019. Pugh was permitted to resign from Columbia Capital Securities in September 2024 while the firm was investigating his alleged involvement in selling away.
Pugh’s IAPD record reportedly lists an outside business activity as an independent contractor to Oak Quarry Management LLC beginning in January 2022, describing his role as assisting the company and its partnerships with investor relations, qualifying investors, and securities sales activities. It is this fund complex that FINRA reportedly says was the source of the promissory notes at the center of its investigation.
FINRA’s Selling Away Allegations Against William Pugh
According to FINRA’s Acceptance, Waiver and Consent (Case No. 2024083338701), which Pugh settled without admitting or denying the findings, FINRA allegedly found that he participated in private securities transactions without providing prior written notice to Columbia Capital Securities, his member firm. FINRA’s findings stated that Pugh allegedly participated in a private securities offering involving the sale of promissory notes issued by a private equity fund, in which Pugh was a limited partner, held a 3 percent ownership interest in the fund’s general partner, and served as an independent contractor for the general partner.
In connection with the offering, FINRA alleged that Pugh helped identify potential investors and participated in soliciting them by scheduling and attending meetings with them, handling follow-up communications, and facilitating their purchase of the notes and transfer of funds. The offering allegedly raised at least $8,000,000 from 18 accredited investors, nearly all of whom were customers of Columbia Capital Securities. Pugh did not earn any commissions in connection with the offering, according to FINRA. FINRA’s investigation was reportedly triggered by a Form U5 that Columbia Capital Securities filed after Pugh’s resignation.
FINRA found that the conduct violated Rule 3280, which prohibits private securities transactions without a member firm’s authorization, and Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade. Pugh’s suspension runs from August 11, 2026 through June 10, 2027, and the $10,000 fine was ordered under a deferred payment plan.
William Pugh Complaints and Investor Recovery Options
Investors who purchased promissory notes connected to Oak Quarry Management through Pugh may have grounds to pursue a claim. Under FINRA rules, a brokerage firm can be held responsible for a broker’s selling away activity if the firm knew or reasonably should have known about it and failed to supervise the broker accordingly. Investors with William Pugh complaints related to Oak Quarry Management notes, or who are simply unsure whether their investment was properly disclosed and approved, may want to have their account reviewed by a securities attorney.
Frequently Asked Questions
How do I file a claim to recover money I invested through William Pugh?
Investors who believe they lost money because of Pugh’s alleged selling away can pursue a claim to recover their losses. Most brokerage account agreements contain a pre-dispute arbitration clause, so these claims are generally filed and resolved through FINRA arbitration rather than in court. FINRA arbitration functions much like a lawsuit in that investors can recover monetary damages, but the case is decided by a FINRA arbitration panel instead of a judge and jury. A securities attorney can review your account statements and the promissory note offering documents, file the claim on your behalf, and represent you through the arbitration process.
What is “selling away,” and why does it matter for my investment?
Selling away happens when a broker sells or solicits an investment that has not been approved by, or disclosed to, their brokerage firm, as FINRA Rule 3280 requires. It matters because investments sold this way bypass the firm’s due diligence, compliance review, and ongoing supervision, so investors lose the protections they would normally have when buying a product through their broker’s firm. That is what FINRA found happened with the Oak Quarry Management promissory notes at issue in Pugh’s case.
Can Columbia Capital Securities be held responsible for my losses, even though it didn’t approve the notes?
Potentially, yes. Brokerage firms have a duty under FINRA rules to reasonably supervise their registered representatives, including watching for red flags of undisclosed outside business activity or private securities transactions. If Columbia Capital Securities knew or reasonably should have known that Pugh was raising money from its customers for the Oak Quarry Management notes and failed to stop it, the firm itself may share liability for investor losses even though it did not directly sell the notes.
Contact The White Law Group
The White Law Group, national securities fraud attorneys with offices in Chicago and Seattle, represents investors nationwide in FINRA arbitration claims against brokers and brokerage firms. If you invested through William Pugh and have concerns about how your money was handled, contact a FINRA arbitration attorney at The White Law Group for a free consultation by calling (888) 637-5510 or visiting our contact page.
