Brookstreet exec makes move

In an attempt to save a semblance of his family’s broker-dealer, Scott Brooks, son of the founder of Brookstreet Securities Corp., yesterday jumped to Wedbush Morgan Securities Inc. and immediately invited Brookstreet’s 500 affiliated reps to join him.
Hammered by exposure to a risky type of mortgage backed security, Brookstreet Securities of Irvine, Calif., a day earlier on Wednesday told reps and advisers that “disaster” had struck, igniting speculation that the firm would be acquired.
Wedbush Morgan of Los Angeles does not have an independent-contractor brokerage arm, and Mr. Brooks, formerly executive vice president of Brookstreet, will “substantially build and staff” that part of the business, he told advisers in an e-mail message.
“I understand that you have options,” he told the reps. “I believe this is an optimal solution for you.”
He stands to face some stiff competition from other independent-contractor broker-dealers for those reps.
Securities America Inc. of Omaha, Neb., is making particularly aggressive offers, said one industry source, who asked not to be named.
On Wednesday, Brookstreet Securities told its advisers that it could be forced to close if it didn’t come up with lat least $5 million, according to an internal e-mail message.