According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Christopher Parr (Parr), in October 2017, was under investigation by FINRA based on a preliminary determination that Parr’s conduct allegedly violated FINRA Rules 3240, 3280, and 2010. In addition, the state of Kansas has a pending regulatory mater concerning allegations that Parr borrowed money from a client on three occasions and did not disclose the loans to his firm. These allegations concern conduct that occurred while Parr was registered with KCD Financial, Inc. (KCD Financial).
At this time it is unclear the extent and scope of Parr’s activities. Parr’s CRD lists that he does business under the name First Capital Group, Inc.
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”.
In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. However, even though when these incidents occur the brokerage firm claims ignorance of their advisor’s activities the firm is obligated under the FINRA rules to properly monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Parr entered the securities industry in 1992. From December 2006 until April 2017 Parr was associated with KCD Financial out of the firm’s Overland Park, Kansas office location.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana LLP are experienced in representing investors in cases of selling away and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.