According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Mitchell Bloom (Bloom), formerly associated with Cetera Advisor Networks LLC (Cetera), and operating under the d/b/a name Bloom Financial, LLC was terminated by Cetera in November 2017. Bloom was accused by Cetera of violating firm’s policies and the representative participated in a private securities transaction and engaged in an outside business activity without the firm’s prior approval.
Thereafter in February 2019 FINRA barred Bloom from the securities industry. FINRA alleged that Bloom consented to the sanction and to the findings that he refused to appear for FINRA on-the-record testimony in connection with its investigation of the reasons for the termination of his employment from Cetera. FINRA found that Cetera had filed a Form U5 stating that in violation of the firm’s policies he participated in a private securities transaction and engaged in an outside business activity without the firm’s prior approval. Bloom’s failure to respond to FINRA drew an automatic bar from the industry.
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 point is unclear what securities or business activities Bloom was engaged in. His public disclosures state that he was engaged in Bloom Life, LLC selling annuities and Alterna Card Services – a sales and marketing company.