Former West Tennessee Insurance Agent Loses License, Fined $3,000
NASHVILLE –The Securities and Insurance Divisions of the Tennessee Department of Commerce & Insurance (TDCI) announce the licensure revocation and $3,000 civil penalty against Barry Hubert Bynum, a Pinson-based former insurance salesman who has admitted to fraudulently selling unlicensed investment securities.
Bynum created two fraudulent, unregistered investment contracts valued at $100,000 through an unlicensed broker-dealer company called Estate Security and sold the contracts to an Alabama resident as “Certificates of Investment.” Bynum broke state law by selling these investments without disclosing to the investor that the contracts were not registered with TDCI’s Securities Division nor did he disclose that Estate Security was not an active registered broker-dealer nor an investment adviser. The scheme was only uncovered when the investor’s health began to fail in 2014 and a family member sought a refund of the invested monies, only to learn there was no money to be found.
“Tennesseans should always remember that it is illegal to sell securities or act as an investment adviser without a license,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “Consumers can help protect themselves by remaining alert and never taking any investment offer solely at face value.”
A final Consent Order (effective May 31, 2016) permanently bars Bynum from participation in the securities industry in Tennessee; imposes a $3,000 civil penalty; orders him to cease and desist all activities that are violations of the law; and revokes his insurance salesperson’s license.
A copy of the order can be found here. Tennesseans are encouraged to visit the Department’s website where they can inspect disciplinary actions and verify licenses of securities and insurance professionals.
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. To file a complaint online, visit https://tn.gov/commerce/article/securities-file-a-complaint.