The law offices of Gana Weinstein LLP are currently investigating claims that advisor John Howley (Howley), formerly associated with Park Avenue Securities LLC (Park Avenue), was accused of selling securities without informing his brokerage firm. According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) Howley has seven customer complaints, one regulatory action, and one employment termination for cause. Howley has been accused by multiple customers of selling fraudulent investments in Global Credit Recovery. If you have been a victim of Howley’s alleged misconduct our firm may be able to assist you in recovering funds.
In September 2019 FINRA brought a regulatory action against Howley alleging that Howley consented to the sanction and to the entry of findings that he refused to appear and provide an on-the-record testimony requested by FINRA. FINRA stated that it requested an on-the-record interview for testimony in connection with its investigation into allegations reported by Howley’s member firm in a Form U5 that he failed to disclose private securities transactions to the firm and referred clients to outside investments.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent 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.
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.
Howley entered the securities industry in 1995. From May 1999 until November 2018 Howley was registered with Park Avenue out of the firm’s Rumson, New Jersey office location.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. Investors may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of selling away and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.