Public records recently made available through FINRA BrokerCheck reveal serious red flags regarding former Atlanta-based broker Timothy Nathaniel Darnell (CRD# 6666469). Darnell, who was previously registered with Bankers Life Securities, Inc., is currently the subject of multiple pending customer arbitrations alleging his involvement in a $140 million Ponzi scheme.
The Allegations: Unsuitable Recommendations and “Selling Away“
According to his official CRD report, three separate customer disputes were filed between September and October 2025. These claims, which seek total damages of $1,750,000, allege that Darnell made unsuitable investment recommendations and engaged in “selling away”—a term used when a broker sells investments not approved by their firm.
The specific allegations include:
- Breach of Fiduciary Duty: Failing to act in the best interest of his clients.
- Negligence and Misrepresentation: Providing false or misleading information regarding investment risks.
- First Liberty Building & Loan, LLC: The disputes specifically tie Darnell’s recommendations to an alleged Ponzi scheme involving promissory notes from First Liberty Building & Loan.
Termination by Bankers Life Securities
On September 12, 2025, Bankers Life Securities officially discharged Darnell. The firm’s reported reasons for the termination include his failure to disclose outside business activities (OBA), participation in unapproved private securities transactions (PST), and the use of “off-channel” communications with clients, which violated firm policy.
What is “Selling Away”?
When a broker like Darnell promotes investments like the First Liberty “Bridge Loans” without the knowledge or approval of their employing firm, it is a major violation of industry rules. Brokerage firms have a strict duty to supervise all securities-related activities of their representatives. When they fail to do so, the firm itself—in this case, Bankers Life Securities—may be held liable for the resulting investor losses through the FINRA arbitration process.
Talk to a Securities Lawyer
The securities attorneys at Halling & Cayo, S.C. are interested to talk to investors who may have claims related to Timothy Nathaniel Darnell’s recommendations. If you invested in First Liberty Building & Loan or other promissory notes through Mr. Darnell, you may have a path to recover your losses.
FINRA arbitration is a specialized forum designed to resolve disputes between investors and brokerage firms. Unlike traditional court cases, these are often resolved faster, but they require a deep understanding of securities law and the “red flags” that indicate a firm failed in its duty to protect you.
Sean M. Sweeney is a shareholder at Halling and Cayo, a full service law firm in Milwaukee, WI and the head of its Securities Litigation team.
He represents individual and institutional investors in FINRA arbitration and court nationwide. He recovers investment losses from fraud or breach of duty from their broker-dealer.
Contact him at (414) 755-5020 or via e-mail at SMS@hallingcayo.com to see if he can help recover your funds.