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Advisor Philip Nalesnik Terminated Over Outside Business Activity Violations

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Philip Nalesnik (Nalesnik), formerly associated with LPL Financial, LLC (LPL Financial) in Pottsville, Pennsylvania was terminated by the firm.  In July 2018 Nalesnik was discharged after the firm claimed that he was in violation of firm policy regarding outside business activities and failed to timely and completely respond to firm inquiries.

In addition, Nalesnik has several reported tax liens including a $4,573 lien in September 2017 and a $7,847.61 lien in July 2012.

At this time it is unclear the nature or scope of the alleged OBAs and if such activity included private securities transactions.  Nalesnik’s public disclosures show that he operated Ridgeview Wealth Management a d/b/a entity.  In addition, Nalesnik owned Integrated Insurance Management LLC.

Often accompanied with either disclosed or undisclosed OBAs is the risk of the sale of unapproved investment products – 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.  When advisors convert or misappropriate funds they often created businesses or other vehicles to serve as a cover for the theft 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.

Nalesnik entered the securities industry in 2002.  From July 2008 through July 2018 Nalesnik was associated with LPL Financial out of the firm’s Pottsville, Pennsylvania 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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