The investment fraud lawyers of Gana LLP are investigating the employment termination filed with The Financial Industry Regulatory Authority (FINRA) by Wells Fargo Advisors, LLC (Wells Fargo) and the regulatory action filed by FINRA involving broker John Hoekman (Hoekman). According to BrokerCheck records Hoekman has been subject to six customer complaints and one employment separation for cause.
According to Wells Fargo, the firm terminated Hoekman after alleging Hoekman resigned after the firm reviewed allegations made in a customer complaint. Thereafter, in July 2016, FINRA barred Hoekman after alleging that Hoekman consented to the sanctions that he failed to provide documents and information requested by FINRA during the course of an examination into allegations that Hoekman engaged in certain outside business activities (OBAs) and participated in private securities transactions. (FINRA No. 2015045695501). Often times such filings indicate that the broker is engaging potentially in private securities transactions, promissory notes, or loans away from the firm. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.
At this time it unclear the scope of Hoekman’s OBAs and/or private securities transactions. According to brokercheck records Hoekman has disclosed OBAs listed as including Naturally Advanced Technologies. Often times, brokers sell promissory notes and other investments through side businesses as accountants, lawyers, real estate brokers, or insurance agents to clients of those side practices.