The law offices of Gana Weinstein LLP are currently investigating claims that Broker Nicholas Stovall (Stovall) 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 Stovall was employed by Gradient Securities, LLC at the time of the activity. If you have been a victim of Stovall’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on July 20, 2023.
Respondent recommended promissory notes issued by Premier Global Corporation\<char_lb_r>\, (PGC), Premier Factoring, LLC (PF-LLC) and/or Premier Factoring Group, LLC (PFG-LLC)\<char_lb_r>\, to six of his Minnesota investment advisory clients between 2018 and 2021 without\<char_lb_r>\, reasonable grounds to believe that the recommendations were suitable in violation of\<char_lb_r>\, Minn. Rule 2876.5023, subp. 1(A) (2023). These Minnesota investors then purchased over $1.1M in promissory notes from PFLLC,\<char_lb_r>\, PGC, and/or PFG-LLC between March of 2018 and May of 2021, incurring\<char_lb_r>\, substantial if not total losses in violation of Minn. Stat. 80A.69 \\u00a7 502(a)(2) (2024). Respondent failed to report these activities and the Premier Transactions to his\<char_lb_r>\, investment firm in violation of the Minnesota Securities Act and other matters\<char_lb_r>\, entrusted to the commissioner in violation of Minn. Stat. 45.027, subd. 7(2) (2024).Respondent failed to report these activities and the Premier Transactions to his\<char_lb_r>\, investment firm in violation of the Minnesota Securities Act and other matters\<char_lb_r>\, entrusted to the commissioner in violation of Minn. Stat. 45.027, subd. 7(2) (2024).
Our firm is highly experienced in pursuing cases for defrauded clients whose advisors accept client loans or sell securities through OBAs. The practice of selling unapproved investments, promoting fraudulent schemes to hide misused funds, and engaging in other deceptive acts is known in the industry as “selling away,” a major infraction of 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. 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.
Stovall has been in the securities industry for more than 14 years. Stovall has been registered as a Broker with Gradient Securities, LLC since 2009.
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.