The law offices of Gana Weinstein LLP are currently investigating claims that Broker Jeremiah Roman (Roman) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Roman was employed by PFS Investments INC. at the time of the activity. If you have been a victim of Roman’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on July 18, 2023.
Without admitting or denying the findings, Roman consented to the sanctions and to the entry of findings that he personally invested a total of $44,100 pursuant to eight agreements with a merchant cash advance company without providing prior written notice to, or obtaining written approval from, his member firm for his private securities transactions. The findings stated that Roman’s agreements with the company provided that Roman would receive a monthly payment in a specified amount in return for each investment. In addition, Roman did not make the personal securities investments through his firm. The findings also stated that Roman solicited a firm customer to invest a total of $150,000 pursuant to three agreements with the company, without providing prior written notice to his firm. Roman introduced the customer to the company, provided the customer with marketing materials prepared by the company, and facilitated the exchange of information between the customer and the company. Roman did not disclose his participation in the customer’s investments to his firm, even though he was advised by its compliance hotline to disclose his merchant cash advance company-related activities for review. Furthermore, Roman falsely attested on an annual compliance questionnaire that he had not participated in any private securities transactions that had not been approved by the firm.
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. The sale of unapproved investment products, fake investments that cover misappropriated funds, and other fraudulent behavior – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry, “selling away” describes a financial advisor soliciting investments in companies, promissory notes, or other securities that lack prior approval from their affiliated brokerage firm. In some cases, these investments are legitimate, but more often than not, they result in Ponzi schemes or financial advisors converting funds for personal use.
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. Each firm is obligated to enforce measures that oversee brokers by monitoring advisors’ conduct and their interactions with clients. 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.
Roman has been in the securities industry for more than 7 years. Roman has been registered as a Broker with PFS Investments INC. since 2014.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.