Advisor Nicholas Palumbo Terminated Over Private Dealings – Investor Recovery Options

shutterstock_171721244-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor Nicholas Palumbo (Palumbo) has been accused by his former employer, Park Avenue Securities LLC (Park Avenue), of engaging in undisclosed outside business activities (OBAs) and private securities transactions.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Palumbo was employed by Park Avenue through April 2020 when the firm permitted him to resign over these allegations.  If you have been a victim of Palumbo’s alleged misconduct our firm may be able to assist you in recovering funds.

Park Avenue’s disclose states that Palumbo was “permitted to resign while under investigation for failure to disclose an unapproved private securities transaction and soliciting clients to invest in same.”

According to Palumbo’s BrokerCheck he has several disclosed OBAs.  It is currently unknown if any of these OBAs had any involvement with Park Avenue’s allegations.  The disclosed OBAs include Empowered Mastery Consultants, Children’s Health & Research Foundation, You Have Infinite Power – a book Palumbo co-authored –, and his securities d/b/a Truvium Financial Group.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs.  The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws.  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.  Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

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 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.

Palumbo entered the securities industry in 1983.  Since 1999 Palumbo has been associated with Park Avenue out of the firm’s Armonk, New York 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.

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