Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Stacy Cheney-Jamison (Cheney-Jamison), a/k/a Stacy Cheney, Stacy Edwards, Stacy Kuczynski, and Stacy Sang was formerly associated with CUNA Brokerage Services, Inc. (CUNA) in Boca Rotan, Florida was barred by FINRA concerning allegations that Cheney-Jamison sold investments away from her firm.
In May 2018 FINRA found that Cheney-Jamison consented to the sanctions and to the entry of findings that she refused to provide information requested by FINRA in connection with its investigation into allegations regarding her involvement in private securities transactions and falsification of client account forms. In addition, in March 2018 a customer filed a complaint alleging multiple violations of the securities laws and claiming $350,000 in damages.
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 Cheney-Jamison are unclear as to the exact nature and extent of the activity. Cheney-Jamison does not have any outside business disclosures on her public record
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 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.
Cheney-Jamison entered the securities industry in 2001. From July 2009 until January 2013 Cheney-Jamison was associated with VALIC Financial Advisors, Inc. Form January 2013 until February 2015 Cheney-Jamison was associated with First American Securities, Inc. From March 2015 until October 2015 Cheney-Jamison was associated with IFS Securities. Finally, from September 2016 until August 2017 Cheney-Jamison was associated with CUNA out of the firm’s Boca Raton, 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.