Advisor Carol Chiarito Terminated Over Private Investment Sales

shutterstock_94332400-300x225According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Carol Chiarito (Chiarito), formerly associated with Mutual of Omaha Investor Services, Inc. (Mutual Omaha) in Pueblo, Colorado was terminated concerning allegations that Chiarito violated firm policies and procedures related to selling away.

The allegations concerning private securities transactions are often accompanied by claims of engaging in outside business activities.  Private securities transactions is a practice known in the industry as “selling away” – a serious violation of the securities laws.

At this time, the selling away claims against Chiarito are unclear as to the exact nature and extent of the activity.  Chiarito’s outside business disclosures include Chiarito’s Retirement by Design, LLC – her d/b/a business.  In addition, Chiarito discloses CareMatch American, Inc., Kiwanis Club of Pueblo, Chestnut Rental Home, and work as an insurance agent among other activities.

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.  Firms attempt to disclaim liability for investments sold away by their brokers by claiming ignorance of their advisor’s activities.  However, federal securities laws and the FINRA rules require firms to 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 failing to catch a broker’s side business resulting in misappropriation of client funds as well as 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.

Chiarito entered the securities industry in 2004.  From September 2012 until May 2016 Chiarito was associated with TransAmerica Financial Advisors, Inc.  Form May 2016 until February 2017 Chiarito was associated with Signator Investors, Inc.  Finally, from February 2017 until February 2018 Chiarito was associated with Mutual Omaha out of the firm’s Pueblo, Colorado office location.

Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. Investors may be able recover their losses through securities arbitration.  The attorneys at Gana Weinstein 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.