Articles Posted in Selling Away

shutterstock_113632177-300x249According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Robert Jamison (Jamison), formerly associated with PNC Investments, in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Jamison consented to the sanction and to the entry of findings that he refused to provide testimony to FINRA related to allegations that he, in connection with private securities transactions, referred customers to an individual who was not registered and who may have recommended or sold unsuitable securities to those customers.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Jamison’s activities.  Jamison’s disclosures include any outside business activities (OBAs) disclosures.  The only disclosure is an involvement with Crump Life Insurance.

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shutterstock_120556300-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Nicholas Radke (Radke), formerly associated with MML Investors Services, LLC (MML Investors) in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Radke consented to the sanction and a bar from the industry because he failed to provide FINRA with requested documents and information in connection with allegations that Radke participated in a private securities transaction without prior approval from his member firm.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Radke’s activities.  Radke’s disclosures include outside business activities (OBAs).  At this time it is unclear whether the unapproved products involve any of these entities.

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shutterstock_154681727-300x178According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Noel Carino (Carino), formerly associated with General Securities Corp., in November 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In November 2018 FINRA alleged that Carino consented to the sanction and bar from the industry after he refused to provide documents and information requested by FINRA in connection with its investigation into whether he engaged in outside business activities without written notice to his member firm, whether he engaged in private securities transactions without written notice to or approval from the firm, and whether he reported all outside brokerage accounts in which he had an interest to the firm.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Carino’s activities.  Carino’s disclosures include outside business activities (OBAs) including B & N Investments, LLC and Fidelity Wealth Management LLC.  At this time it is unclear whether the unapproved products involve any of these entities.

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shutterstock_89758564-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Mark Tudor (Tudor), in October 2018, was accused by his former employer, Raymond James Financial Services, Inc. (Raymond James) of selling unapproved products.  In addition, Tudor’s disclosures reveal two financial disclosures and two customer complaints.  Thereafter, Tudor became associated with investment advisory firm Collaborative Wealth.

In October 2018 Raymond James terminated Tudor claiming that Tudor was terminated for introducing clients to investments away from the firm without approval and was not helpful when being interviewed by firm counsel.

Tudor’s disclosures include four outside business activities (OBAs) including Tudor Wealth Management, Reik Wealth Management, Young Living, and Positive Path which Tudor owns.  At this time it is unclear whether the unapproved products involve any of these entities.  The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

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shutterstock_158028338-300x298According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Scott Kozak (Kozak), formerly associated with Cetera Advisors LLC (Cetera) in Highlands Ranch, Colorado has been accused by his former firm and barred by FINRA over unapproved securities.  In addition, Kozak has four customer complaints on his record.

In May 2018 FINRA filed a notice of investigation stating that FINRA has made a preliminary determination to recommend disciplinary action be brought against Kozak for potential violations of engaging in private securities transactions and outside business activities for the period July 2011 to March 2017, without prior notice to or approval from his member firm, Cetera Advisors.

Thereafter, in July 2018 Cetera terminated Kozak stating that he violated policies concerning personal securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions.  Kozak’s public disclosures list several OBAs including Kozak & Associates – his securities d/b/a, K&A Charities – a charitable arm of Kozak & Associates, IGC, LLC – a manufacturing company that he owns, and Dominican Home Health agency – where Kozak serves as a board member.  It is unknown if FINRA’s claims relate to any of these entities.

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shutterstock_88744093-297x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor John Buck (Buck), formerly associated with Morgan Stanley in Boston, Massachusetts has been accused by his former firm and barred by FINRA over unapproved securities.

In January 2018 Morgan Stanley terminated Buck stating that there were allegations about the timing and completeness of disclosures to the firm regarding involvement in private investments outside of the firm.

Thereafter, in October 2018 Buck was terminated by FINRA and consented to the sanction that he failed to provide FINRA with requested documents and information in connection with its investigation concerning his potential involvement in certain unapproved private securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions.  Buck’s public disclosures only state that he is an investor in Gemini Partners – a venture fund.

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shutterstock_176351714-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Judith Bufis (Bufis), formerly associated with Kovack Securities Inc. (Kovack Securities) in East Brunswick, New Jersey has been accused by FINRA over private securities transactions.

In October 2018 Bufis consented to the sanction and to the entry of findings that she failed to provide documents and information requested by FINRA in connection with potential private securities transactions.  In so doing she accepted a bar from the securities industry.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions.  Bufis public disclosures state that she engaged in the sale of insurance and annuities but discloses not other activities.

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shutterstock_120556300-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Karl Foust (Foust), formerly associated with H.D. Vest Investment Services (HD Vest) in Boca Raton, Florida has been accused by at least seven clients of selling unsuitable investments in Wimbledon Health Partners leading to substantial investor losses..

In July 2018 a customer filed a complaint alleging that Foust recommended Wimbledon Health Partners LLC that was not suitable and were misrepresented to her. The customer alleged $100,000 in damages.  The claim is currently pending.

In March 2018 another customer filed a complaint alleging that Wimbledon Health Partners LLC, were not suitable and were misrepresented to him.  The customer alleged $95,000 in damages.  The claim is currently pending.

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shutterstock_174352538-300x198According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Gary Pevey (Pevey), formerly associated with Mutual Securities, Inc. (Mutual Securities) in Sacramento, California has been accused by his former firm over unapproved securities.  In addition, Pevey has one customer complaint on his record.

In February 2018 Mutual Securities terminated Pevey stating that he violated policies concerning private securities transactions.

Thereafter in September 2018 a customer filed a complaint alleging that Pevey engaged in high-risk and fraudulent investments and inadequate supervision causing $171,000 in damages.  The claim is currently pending.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions.  Pevey’s public disclosures state that the activity was conducted through his Registered Investment Advisory (RIA) firm Wealth Design Group.  It is unknown the nature of the transactions from public filings.

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shutterstock_76996033-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Dexter Thomas (Thomas), formerly associated with United Planners Financial Services of America LP (United Planners) in Dallas, Texas has been accused by his former firm over unapproved securities and making client loans.  In addition, Thomas has 19 customer complaints on his record – most of which relate to the unapproved activities.

In August 2018 United Planners terminated Thomas stating that he affiliated with the firm in late-2017.  A short period of time later, the Thomas passed away. The firm claimed that immediately before his death, Thomas disclosed that he was involved with a number of private loans or private investments with individuals which private loans or investments were neither disclosed to, nor approved by, the firm. After Thomas’ death customers have claimed that Thomas did not return all of the funds privately loaned to or invested.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions.  Thomas’ public disclosures state that his securities activity was conducted through a d/b/a – Dexter Thomas Financial Services, LLC.

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