#unauthorizedtransactions - Law Offices of Robert Wayne Pearce

Dec 28, 2020

New York, New York Lawyer Who Sues Stockbrokers For Selling Away (Selling Unauthorized Investments)

Did Xerxes Soli Mullan Cause You Investment Losses? Xerxes Soli Mullan of New York, New York was fined $10,000 and suspended for a period of two years for allegedly participating in private securities transactions in violation of FINRA Rules 3280 and 2010. Without admitting or denying the allegations, Mullan consented to the sanctions imposed. The suspension is in effect from October 5, 2020, through October 4, 2022. In March 2017, Xerxes Soli Mullan joined Purshe Kaplan Sterling Investments and was registered as a General Securities Representative. The firm later filed a Uniform Termination Notice (Form U5) stating Mullan voluntarily resigned. According to the FINRA findings, Mullan allegedly managed two separate securities offering for a registered investment advisor (RIA) and solicited approximately $6 million from 36 investors who were not firm customers. The findings stated that Mullan had allegedly disclosed his participation in the RIA but not in the securities offerings. In addition, Mullan falsely attested that he had not been involved in any private transactions on his firm’s annual compliance questionnaires. FINRA Rule 3280(b) states that “prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.” FINRA Rule 3280(e) defines “private securities transaction” as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.” A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010. Do You Need a New York FINRA Securities Arbitration Attorney? Did your New York, New York stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel and failure to supervise. If your attorney knows where to look he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored. Free Initial Consultation With Experienced Selling Away Lawyers Representing New York, New York Residents in FINRA Arbitrations At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New York, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. Se habla español For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving New York citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

Dec 23, 2020

Las Cruces, New Mexico Attorney Who Sues Stockbrokers For Selling Away (Selling Unauthorized Investments)

Did Robert Barnard Cause You Investment Losses? Robert Barnard of Las Cruces, New Mexico was permanently barred from association with any FINRA member in all capacities. The sanction was based on findings that he allegedly refused to appear for an on-the-record testimony regarding allegations of selling outside investments and borrowing money from a customer. By refusing to appear for the testimony, Robert Barnard violated FINRA Rule 8210. In March 2008, Robert Barnard joined Principal Securities, Inc. and registered as a General Securities Representative. According to the FINRA findings, the firm filed a Uniform Termination Notice for Securities Industry Registration (Form U5) indicating the Barnard had been discharged due to evidence of misconduct with clients. Soon after, FINRA began an investigation into the allegations and sent a request to Barnard to appear for an on-the-record testimony. The FINRA findings stated that Barnard had sent an email stating he acknowledged the request and would not appear for the testimony. Although Barnard is no longer associated with any member firm, he remains subject to FINRA’s jurisdiction. FINRA Rule 8210(a)(1) states in relevant part that FINRA “requires a person associated with a member, or any other person subject to FINRA’s jurisdiction to provide information orally, in writing, or electronically and to testify at a location specified by FINRA staff, under oath or affirmation administered by a court reporter with respect to any matter involved in the investigation, complaint, examination, or proceeding.” A failure to comply with a request for information pursuant to FINRA Rule 8210 is a violation of FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” Do You Need a New Mexico FINRA Securities Arbitration Attorney? Did your Las Cruces, New Mexico stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel and failure to supervise. If your attorney knows where to look he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored. Free Initial Consultation With Experienced Selling Away Attorneys Representing Las Cruces, New Mexico Residents in FINRA Arbitrations At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New Mexico, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. Se habla español For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving New Mexico citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

Nov 11, 2020

Former LPL Financial LLC Stockbroker Patrick M. Coogan Barred for Misrepresentation & Unauthorized Transactions

Patrick M. Coogan of Baton Rouge, Louisiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for misrepresentations in violation of FINRA Rule 2010. In 2009, Patrick M. Coogan joined LPL Financial LLC as a General Securities Representative and a General Securities Principal. According to FINRA findings, a Form U5 was filed reporting Patrick M. Coogan’s termination due to unauthorized signatures on LPL agreements. The FINRA findings stated that during the duration of September 2013 through May 2016, Coogan allegedly signed seven control agreements from three banks in connection with a customer’s loan without authorization or approval from his firm. FINRA stated that in order for the customer to obtain these loans, he over pledged his assets in his LPL brokerage account. In addition, FINRA found that Coogan allegedly was aware of the seven agreements containing material misrepresentations. FINRA Rule 2010 requires members and associated persons to observe “high standards of commercial honor and just equitable principles of trade.” A registered representative who makes reckless misrepresentations violates FINRA Rule 2010. Without admitting or denying FINRA findings, Patrick M. Coogan was barred from association with any FINRA member in all capacities and remains under FINRA’s jurisdiction pursuant to Article V, Section 4 of FINRA’s By-Laws. Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misrepresentations, unauthorized transactions, or other misconduct by their broker can file claims to recover damages against broker-dealers, like LPL Financial LLC, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct. Have you suffered losses in your LPL Financial LLC account due to misrepresentations or unauthorized transactions by your broker? Was Patrick M. Coogan your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against LPL Financial LLC stockbrokers who may have engaged in broker misconduct and caused investors’ losses. The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.