What is "Selling Away?"
As a general rule, “selling away” violates current securities
regulations. For an example, consider the allegedly fraudulent actions
of former Michigan broker Lewis J. Hunter.
The SEC has accused Hunter of misappropriating more than $300,000 from
his brokerage clients through false representations, fraudulent transfers,
and falsified bank statements. According to the SEC’s order, Hunter
recommended investments to several of HD Vest Investment Securities’
long-time, elderly clients that he said were not offered on HD Vest’s
He told the clients the investments were “guaranteed” but that
the funds would have to be held outside of their HD Vest brokerage accounts.
He then facilitated transfers from the clients’ HD Vest brokerage
accounts into bank accounts that were under his control. Such transactions
are considered “selling away.”
When a broker engages in “selling away,” the brokerage firm
that is responsible for supervising the broker may be held liable for
the defrauded investors’ losses.
If you believe you have suffered investment losses due to “selling
contact the investment fraud attorneys at Meyer Wilson today. Our firm has been hired by clients with cases Lewis
J. Hunter and HD Vest and we are currently talking to victims of the potential
Our securities fraud lawyers devote their practice to representing investors
who have claims against brokers and brokerage firms, such as HD Vest Investment
Securities. We have represented hundreds of investors in Ohio, Michigan,
California, Texas, and across the country – and the firm has recovered
millions of dollars on the behalf of investors like you in securities
arbitration and litigation cases. We do not charge for initial consultations
and all our cases are handled on a contingency fee.
To learn more about selling away, view the video below.