Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Robert Turner (Turner) 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 Turner was employed by Stifel, Nicolaus & Company, Incorporated at the time of the activity. If you have been a victim of Turner’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on January 27, 2023.
Without admitting or denying the findings, Turner consented to the sanction and to the entry of findings that he participated in private securities transactions without providing prior written notice to his member firm before participating in the sale of fixed annuities that were outside the scope of his employment with the firm. The findings stated that Turner marketed, recommended, and sold fixed annuities offered by an entity formed by his college friend and business acquaintance to customers of Turner’s firm, who collectively invested over $7.2 million in the entity. The entity fixed annuities were not, in fact, fixed annuities, but rather securities. The entity was not a licensed insurance company, nor was it licensed or authorized to sell fixed annuities at any time during the period when Turner sold the entity fixed annuities. Based on Turner’s representations and quarterly annuity statements that the entity sent to them, Turner’s customers believed they would be earning a fixed, guaranteed rate of return of between four percent and eight percent, compounded on a quarterly basis. Turner did not disclose his affiliation with his friend to any of his customers who invested in the entity fixed annuities. Further, Turner actively concealed from the firm his involvement in selling the fixed annuities, which he knew were not an approved firm product, by directing his friend to send copies of the entity quarterly annuity statements to his personal P.O. Box instead of his firm office. Turner also falsely attested on several firm compliance certifications that he understood and agreed to comply with the firm’s prohibition on selling away. In addition, one of Turner’s former firm customers sought to withdraw her entire investment from the entity, which the most recent annuity statement she received had led her to believe was valued at over $450,000. Turner’s friend died before the customer received any money from her investment in the entity. Following the friend’s death, those of Turner’s customers who invested in the entity lost most, if not the entirety, of their investments.
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 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. The term “selling away” in the industry refers to financial advisors promoting investments in businesses, promissory notes, or securities that their affiliated brokerage firm has not approved. While some of these investments may have a degree of legitimacy, they often turn out to be Ponzi schemes or involve advisors misappropriating 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. To ensure proper supervision of brokers, firms must establish procedures for monitoring advisors’ actions and engagements 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.
Turner has been in the securities industry for more than 31 years. Turner has been registered as a Broker with Stifel, Nicolaus & Company, Incorporated since 2021.
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.