Articles Posted in Selling Away

shutterstock_73854277-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor James Kennedy (Kennedy) has been accused by a financial regulator of engaging in unapproved business activities among other allegations.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Kennedy was employed by his prior employer Woodbury Financial Services, Inc. (Woodbury Financial) prior to being investigated concerning his activities.  If you have been a victim of Kennedy’s alleged misconduct our firm may be able to assist you in recovering funds.

In April 2020, FINRA brought a regulatory action and fount that Kennedy consented to sanctions and findings that he failed to provide documents and information requested by FINRA in connection with its investigation into a tip received. FINRA found that Kennedy provided partial but incomplete responses to FINRA’s requests and then subsequently ceased cooperating with the investigation.  FINRA also determined that Kennedy’s former firm filed a Form U5 disclosing his termination and explaining that he was permitted to resign for engaging in an unapproved outside business activity involving a financial transaction with a couple of clients.

Kennedy’s disclosed outside business disclosures include being an insurance agent, Kennedy Investment Consultants LLC, and Hoy Road Properties.  It is unclear whether or not the allegations involve any of these disclosed entities.

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shutterstock_176283941-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor Gautam Arora (Arora) has been accused by his former employer engaging in unapproved investments among other allegations.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Arora was terminated by his prior employer, Transamerica Financial Advisors, Inc. (Transamerica Financial) concerning his promissory note sales.  If you have been a victim of Arora’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019 Transamerica Financial terminated Arora after alleging that firm received information indicating that the representative solicited various individuals to participate in unapproved investments away from the firm. The firm further alleged that the representative entered into lending arrangements and promissory notes with these individuals without receiving prior approval from the firm.

Arora’s outside business activities disclosed on his publicly available BrokerCheck report include World Financial Group, Inc., Real estate broker, and Keller William Realty.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs.  The sale of unapproved investment products – is 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.

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shutterstock_133831631-198x300The law offices of Gana Weinstein LLP are currently investigating claims that advisor Brian Radoo (Radoo) has been accused by his former employer engaging in unapproved outside business activities and by a client for selling a non-approved investment among other allegations.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Radoo was terminated by his prior employer, Next Financial Group, Inc. (Next Financial) concerning his outside business activities.  If you have been a victim of Radoo’s alleged misconduct our firm may be able to assist you in recovering funds.

In April 2020 a customer complained that Radoo violated the securities laws by alleging that Radoo engaged in sales practice violations related to offering the investor an investment in an unapproved outside business activity that involved a cannabis cultivation company. Claimant states that the firm, failed to supervise the representative’s outside business activity.  The claim is currently pending.

In December 2019 Next Financial Investments terminated Radoo after alleging that he engaged in unreported, unapproved outside business activities.

Radoo’s outside business activities disclosed on his publicly available BrokerCheck report include Energy Consulting, Legal Cannabis Cultivation, and real estate rental properties.

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shutterstock_189302954-300x203The law offices of Gana Weinstein LLP are currently investigating claims that advisor Felix Chu (Chu) was investigated by a securities regulator for selling promissory notes to clients among other allegations.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Chu left his prior employer, NYLife Securities, LLC (NYLife Securities) prior to several customer complaints concerning the sale of promissory notes.  If you have been a victim of Chu’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019 FINRA sent Chu requests for information concerning his activities.  Chu failed to respond to the requests and was automatically barred from the brokerage industry.

In October 2019 a customer complained that Chu violated the securities laws by alleging that Radoo engaged in sales practice violations related investments beginning in March 2016 until September 2018, she and her late husband were misled into purchasing promissory notes for $305,000. Plaintiff further alleges that they were misled into remitting a check for $75,000 to purchase what they believed to be additional insurance. The claim is currently, pending and the the investors are seeking compensatory damages in excess of $380,000, lost income, interest, punitive damages and attorneys’ fees.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs.  The sale of unapproved investment products – is 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.

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shutterstock_1744162-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor John Jaramillo (Jaramillo) has been accused by his former employer of selling a non-approved product among other allegations.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Jaramillo has been terminated by his prior employer, Western International Securities, Inc. (Western International) concerning his outside business activities.  If you have been a victim of Jaramillo’s alleged misconduct our firm may be able to assist you in recovering funds.

In March 2020 Western International terminated Jaramillo after alleging that he sold a non-approved product.

Jaramillo’s outside business activities disclosed on his publicly available BrokerCheck report include accident & health insurance and Integrity Real Estate Solutions which is listed as a real estate agent.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs.  The sale of unapproved investment products – is 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.

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shutterstock_93851422-300x240The law offices of Gana Weinstein LLP are currently investigating claims that advisor Dana Vietor (Vietor) has been accused by his former employer and a financial regulator of selling a non-approved product among other allegations.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Vietor was terminated by his prior employer, CFD Investments, Inc. (CFD Investments) concerning his outside business activities.  Thereafter, FINRA barred Vietor from the securities industry relating to sales activities.  If you have been a victim of Vietor’s alleged misconduct our firm may be able to assist you in recovering funds.

In November 2018 CFD Investments terminated Vietor after alleging that he engaged in private securities transactions without providing information to the firm or seeking approval for the transactions. Financial adviser submitted annual questionnaires to the firm advising the firm that he was not engaging in private securities transactions.

In March 2020 FINRA filed a regulatory action against Vietor finding that Vietor consented to sanctions and findings that he engaged in the sale of promissory notes called deposit agreements totaling more than $3 million without disclosing and receiving approval from his member firms for the private securities transactions. FINRA also found that Vietor was engaged in a start-up business venture that required funding and that the deposit agreements raised funds for entities associated with the business venture.

Vietor’s outside business activities disclosed on his publicly available BrokerCheck report include Financial Independence Corporation, SRS Holdings LLC, and SRS Management LLC.

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shutterstock_189302963-300x194The law offices of Gana Weinstein LLP are currently investigating claims that advisor Gerald Dewes (Dewes), working out of East Amherst, New York, has been barred by a financial regulator concerning allegations that he engaged in the sales of private securities among other allegations.  Dewes was barred by The Financial Industry Regulatory Authority (FINRA) concerning his private securities sales conduct.  According to BrokerCheck records, Dewes was formerly registered with FINRA member firm Cadaret, Grant & Co., Inc. (Cadaret Grant).  If you have been a victim of Dewes’ alleged misconduct our firm may be able to assist you in recovering funds.

In March 2020 FINRA found that Dewes consented to the sanctions and a bar from them industry as well as to the entry of findings that he refused to appear for testimony before FINRA during the course of an investigation into his potential participation in undisclosed private securities transactions and outside business activities.  In addition, Cadaret Grant terminated Dewes alleging that he sold away from the firm by soliciting client investments into an undisclosed outside business activity called Elite Roasters, Inc. (Elite Roasters) for which he was an officer and director.

According to Dewes’ publicly disclosed records his outside business activities include Sunbridge Management.

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shutterstock_157018310-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor Jun (Justine) Zhou (Zhou) was discharged by her employer after being accused of offering securities not reported to the company.  According to BrokerCheck records, Zhou is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm The Leaders Group.  In addition, Zhou disclosed one regulatory complaint. If you have been a victim of Zhou’s alleged misconduct our firm may be able to assist you in recovering funds.

In November 2019 FINRA filed a regulatory action alleging that Zhou consented to the sanction and findings that she between April 2017 and June 2018, through a small real estate company she wholly owned and controlled, participated in the sale of $9,050,000 in membership interests in private real estate funds managed by a third party and $5,000,000 in a promissory note with that third-party fund manager. FINRA found that the fund membership interests and the promissory note were securities, involved 15 transactions, and seven investors.  FINRA determined that Zhou’s real estate company received $179,000 in compensation from the third-party fund manager.  In addition, FINRA alleged that on June 4, 2018, Zhou formed Zhou Fund I LLC (Zhou Fund), a private real estate fund managed by Zhou’s real estate company.  Zhou is alleged to have subsequently filed a notice of exempt offering of securities with the Securities and Exchange Commission related to twelve transactions in June and July 2018 through which Zhou and her real estate company sold $2,000,000 in membership interests in Zhou Fund to twelve investors.

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shutterstock_188383739-300x300The law offices of Gana Weinstein LLP are currently investigating claims that advisor Bobby Coburn (Coburn) engaged in undisclosed outside business activities (OBAs) and private securities transactions that were not approved by the brokerage firm.  Coburn, formerly registered with Securities America, Inc. (Securities America) was subject to a regulatory investigation and barred form the industry according to records kept by The Financial Industry Regulatory Authority (FINRA).  In addition, Coburn disclosed one employment termaintion for cause and two customer complaints.

In August 2019, FINRA alleged that Coburn accepted a bar from the financial industry, after consenting to sanctions and to the entry of findings that he refused to provide FINRA with requested information and documents. FINRA stated that Coburn’s member firm had terminated his association and stated on his Form U5 that he was involved in the solicitation of multiple clients to invest in an unapproved private securities transaction and engaged in the settlement of a related customer’s complaint without the firm’s knowledge or consent.

In March 2019 Securities America discharged Coburn and accused him of misconduct.

At this time it is unclear what the activity was that was the focus of FINRA’s investigation or the scope of Coburn’s activities.  Coburn’s publicly available BrokerCheck information discloses one OBA called Born to Retire which appears to be an insurance sales business.  It is unknown whether the activity investigated by FINRA involves any of these entities.

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shutterstock_189276023-300x198The law offices of Gana Weinstein LLP are currently investigating claims that advisor Bryan Clark (Clark), formerly associated with Madison Avenue Securities, LLC (Madison Securities), was accused of selling securities without informing his brokerage firm.  According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) Clark has three customer complaints, one bankruptcy disclosure, and one regulatory action. If you have been a victim of Clark’s alleged misconduct our firm may be able to assist you in recovering funds.

In August 2019 FINRA brought a regulatory action against Clark alleging that  Clark consented to the sanction and to the entry of findings that he refused to appear and provide on-the-record testimony during the course of FINRA’s investigation into whether he willfully failed to disclose a bankruptcy, failed to disclose outside business activities and participated in private securities transactions.

At this time it is unclear what business activities and the private securities transactions refer to.  Clark’s disclosures list several business activities including Preservation Capital Group, LLC and Value Health + Life Insurance Serves.

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