What To Know About Broker Selling Away
Ex-American Trust Financial Advisor David Geake Is Barred Following 25 Customer Disputes
The Financial Industry Regulatory Authority (FINRA) has barred former stockbroker David Geake for alleged broker misconduct. Geake, who most recently was an American Trust Investment Services financial advisor, has 25 customer disputes on his CRD. He was fired from another broker-dealer Ausdel Financial Partners for allegedly selling away, which appears to be the reason for the industry bar.
Shepherd Smith Edwards and Kantas (investorlawyers.com) represent clients who have been victims of broker misconduct. If you suspect that your investor losses may be due to the fraudulent or negligent actions of your financial advisor, contact us today.
What Is Selling Away?
This is the term used for when a broker markets or sells a security that is not held, offered, or approved by their broker-dealer of record to a customer. This can be risky for the investor, who ends up buying a financial product that has not been vetted, including not undergoing the proper due diligence, to ensure that it is a safe and viable investing opportunity. One of the reasons that a broker might sell away could be the opportunity to earn high commissions from this particular transaction.
While selling away can be a legitimate way of doing business if the financial advisor notifies the firm first that they wish to sell unapproved securities—and the broker-dealer decides to approve the transaction and, subsequently, supervise the sale—it is the unauthorized sales that can lead to serious investment losses for customers. Not only that but without written approval from the broker-dealer, selling away violates FINRA rules.
Selling away can also be a way for unscrupulous brokers to sell risky, unapproved financial products to investors or, in some instances, commit serious investment fraud. Your financial advisor may even misrepresent that their financial firm has approved the product when, in fact, it has not.
What Should I Do If I Suffered Losses Because My Financial Advisor Engaged in Selling Away?
Even if your broker-dealer was not aware of the unapproved sales, it was still their duty to properly supervise their financial advisor and the latter’s activities in your account. If you sustained investment losses from selling away, you may be able to sue the brokerage firm for damages.
Why Should I Hear Skilled Selling Away Lawyers?
Proving broker-dealer negligence can be difficult, which is why you want seasoned stockbroker fraud attorneys by your side. At Shepherd Smith Edwards and Kantas, we have been fighting for investors for over 30 years. We are dedicated to not only holding broker-dealers accountable for negligence, failure to supervise, or misconduct but also for doing what we can to help our clients receive the financial recovery they are owed.
This usually involves filing your selling away lawsuit for you in FINRA arbitration and representing you before the panel of arbitrators and against your brokerage firm’s legal team. Because we work on a contingency basis, you will only pay us if we recover damages from you and the money will come from the award or settlement rather than your own pocket.
Over the years, we have helped thousands of investors collectively recover many millions of dollars in damages.
How To Contact Our Selling Away Lawyers
Call the SSEK team of Selling Away Lawyers at (800) 259-9010 today.