Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Benjamin Rosamond (Rosamond) 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 Rosamond was employed by Robinhood Securities, LLC at the time of the activity. If you have been a victim of Rosamond’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on January 14, 2025.
Without admitting or denying the findings, Rosamond consented to the sanctions and to the entry of findings that he participated in an OBA without providing prior written notice to his member firm. The findings stated that Rosamond acted as an officer of an investment club for accredited investors, organized as a limited liability company. Rosamond executed securities transactions in the company’s brokerage accounts held at other member firms. The findings also stated that Rosamond participated in private securities transactions without providing prior written notice to his firm. In total Rosamond executed over 400 trades, totally approximately $500,000 in principal value. Rosamond did not receive compensation for the transactions.
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. “Selling away” is the industry term for the sale of unauthorized investments, fraudulent financial schemes that cover up misappropriated funds, and other illicit activities, all of which constitute a serious violation of securities laws. In the industry, “selling away” describes a financial advisor soliciting investments in companies, promissory notes, or other securities that lack prior approval from their affiliated brokerage firm. While a few of these investments might be valid, many end up as Ponzi schemes or involve advisors illegally converting client funds.
However, 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.
Rosamond has been in the securities industry for more than 9 years. Rosamond has been registered as a Broker with Robinhood Securities, LLC since 2020.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.