“Selling away” refers to securities transactions involving a broker who recommends an investment that is not vetted or typically sold through his or her firm. Unsupervised selling away can lead to losses that may be legally actionable.
Regulatory rules and regulations from FINRA, the country’s main securities regulatory body, are clear on the matter. A broker cannot sell investment products away from the broker-dealer without the written approval of his or her firm.
When a broker has a relationship of trust with his or her clients, it can be easier to break rules. When rules have been broken and losses occur, talking to an experienced attorney may be an important step.
A Law Firm With The Securities Experience Needed To Help You
If you or a loved one has suffered investment losses due to broker fraud, we can help. Since 1990, attorney Timothy J. Dennin, in Northport, has been fighting for the rights of investors in securities fraud matters, helping his clients recover hundreds of millions of dollars.
Mr. Dennin can assist you if your case involves selling away when:
- The investor had a close, trusting relationship with the broker — sometimes a personal relationship or fiduciary relationship — and assumed that the firm would be behind the investment products. Elderly investors are sometimes susceptible to being victimized by brokers who do not have their best interests in mind.
- The investment proves to be a fraud — private placements, protected notes, promissory notes and other problematic investments may have been involved.
- A firm did not reasonably supervise its broker, particularly if the firm knew or had reason to know that the broker had behaved unethically or illegally in the past.
Directors of publicly traded companies, investment firms, stockbrokers, brokerage houses and investment advisers are responsible for keeping their clients’ interests as a priority in all investments. When they fail to uphold their responsibilities, legal recourse may be available.