WILLIAM PUGH Suspended by FINRA Over $8 Million Promissory Note Offering – Investors Who Suffered Losses May Have Claims

WILLIAM PUGH Suspended by FINRA Over $8 Million Promissory Note Offering.

If you purchased promissory notes from or through WILLIAM NICHOLAS PUGH and have suffered investment losses, contact Goodman & Nekvasil, P.A. at 800-500-4442.

WILLIAM NICHOLAS PUGH (CRD #4855771), a former Columbia Capital Securities broker, has been suspended by FINRA for 10 months and fined $10,000 after participating in a private securities offering involving promissory notes without providing required notice to his broker-dealer.

According to FINRA, the offering raised at least $8 million from 18 accredited investors, nearly all of whom were Columbia Capital customers.

Investors who purchased promissory notes and have suffered losses may want to have their potential claims reviewed by a securities attorney.

What FINRA Found

WILLIAM NICHOLAS PUGH was registered with Columbia Capital Securities from October 2021 until September 2024. Columbia permitted him to participate in a private equity fund as an outside business activity, but required him to comply with FINRA Rule 3280 when participating in private securities transactions involving the fund.

Between April and August 2024, FINRA found that WILLIAM NICHOLAS PUGH participated in a private offering involving promissory notes without first notifying Columbia Capital in writing.

FINRA states that WILLIAM PUGH helped draft offering documents, selected investors, participated in initial investor outreach, and executed the promissory notes on behalf of the fund.

FINRA determined that WILLIAM PUGH violated FINRA Rules 3280 and 2010 and imposed a 10-month suspension and $10,000 fine.

The AWC also states that WILLIAM PUGH did not earn commissions from the promissory note offering.

What Is “Selling Away”?

Selling away generally refers to a broker participating in a securities transaction outside the regular course or scope of the broker’s employment with a broker-dealer without following the firm’s required procedures.

FINRA Rule 3280 requires an associated person to provide prior written notice to the broker-dealer before participating in a private securities transaction. The notice is intended to identify the transaction, the broker’s role, and whether the broker may receive selling compensation.

Selling away can create significant problems for investors because the outside investment may not receive the same level of broker-dealer review, supervision, due diligence, recordkeeping, and oversight as investments offered through the firm’s approved platform.

It can also make it more difficult for an investor to recognize who was responsible for recommending or selling the investment and whether the broker-dealer had knowledge of the transaction.

Importantly, FINRA’s AWC does not state that the promissory notes were fraudulent or that investors suffered losses. It establishes that WILLIAM PUGH participated in the private securities transaction without providing Columbia Capital the required prior notice.

Did You Invest in These Promissory Notes?

FINRA states that 18 accredited investors participated in the offering and that nearly all were Columbia Capital customers because of their earlier purchase of equity interests in the fund.

If you purchased promissory notes from or through WILLIAM NICHOLAS PUGH and have experienced losses, an attorney can review your investment documents and circumstances to determine whether you may have a potential claim.

Call Goodman & Nekvasil, P.A. at 800-500-4442 to discuss your situation.

Important Disclaimer

FINRA’s AWC states that WILLIAM PUGH accepted and consented to FINRA’s findings without admitting or denying them.

The FINRA action does not establish that investors suffered losses or that the promissory notes were fraudulent. Whether an investor has a potential legal claim depends on the particular facts and circumstances of the investment.

Goodman & Nekvasil, P.A., has filed numerous cases against brokerage firms selling high-risk investments and has recovered more than $500 million dollars on behalf of victimized investors.

We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives.

There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee.

If you incurred losses on your investment and would like your case evaluated by a securities attorney, please contact us.

Some of the information in this blog post was obtained from FINRA on 8/17/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.