According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Mark Tudor (Tudor), in October 2018, was accused by his former employer, Raymond James Financial Services, Inc. (Raymond James) of selling unapproved products. In addition, Tudor’s disclosures reveal two financial disclosures and two customer complaints. Thereafter, Tudor became associated with investment advisory firm Collaborative Wealth.
In October 2018 Raymond James terminated Tudor claiming that Tudor was terminated for introducing clients to investments away from the firm without approval and was not helpful when being interviewed by firm counsel.
Tudor’s disclosures include four outside business activities (OBAs) including Tudor Wealth Management, Reik Wealth Management, Young Living, and Positive Path which Tudor owns. At this time it is unclear whether the unapproved products involve any of these entities. 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.
Tudor entered the securities industry in 1997. From March 2009 until February 2013 Tudor was associated with Winter Park, Flordia. From February 2013 until October 2018 Tudor was registered with Raymond James out of the firm’s Lake Mary, Florida 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.