Articles Tagged with AVANTAX INVESTMENT SERVICES

The law offices of Gana Weinstein LLP are currently investigating claims that Broker Stephen Polak (Polak) 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 Polak was employed by Avantax Investment Services, Inc. at the time of the activity.  If you have been a victim of Polak’s alleged misconduct our firm may be able to assist you in recovering funds.

FINRA BrokerCheck shows a final customer complaint on July 31, 2024.

Without admitting or denying the findings, Polak consented to the sanctions and to the entry of findings that he failed to provide prior written notice to his member firm of his role as an officer and director of an OBA. The findings stated that Polak served as a board member of a corporation that grew and sold hemp related products. Polak had signatory authority over the corporation’s bank accounts, and primary responsibility for its accounting and bookkeeping, including maintaining the corporation’s ledger of transactions for its unregistered offering, and receiving payments from shareholders. Polak received annual compliance trainings about regulatory requirements relating to OBAs and affirmed in annual compliance certifications that he understood his obligation to comply with regulatory requirements and his firm’s WSPs, including those about outside business activities. Polak’s firm learned about his OBA with the corporation from his state Department of Financial Regulation and questioned him about it. Polak orally acknowledged the activity but did not provide written notice to his firm until almost a year later. The findings also stated that Polak participated in private securities transactions without disclosing or seeking his firm’s written approval to participate as required by its WSPs. The corporation issued 3.25 million shares of its unregistered common stock to Polak to compensate him for his work as an Officer and Director of the corporation.