Meyer Wilson is now investigating allegations that former broker Adam K.
Veron (CRD# 4508315) engaged in an unlawful practice known as selling away.
Adam Veron has been suspended from the securities industry since August
2017, according to his BrokerCheck Report from FINRA. He was most recently
registered as a broker for Questar Capital Corporation of Lake Charles,
LA. from September 2013 to February 2017.
In the FINRA regulatory action initiated against him, he was accused of
selling investments in his own company without getting proper authorization
from his firm. Veron was discharged from Questar Capital in February 2017.
Veron consented to FINRA’s findings that he sold almost $1.8 million
in securities in a company of which he was president and co-founder, without
first giving his firm written notice and seeking the firm’s approval.
He sold these securities to nine customers of the firm and to one person
who was a non-customer.
These transactions allegedly were made in violation of several federal
securities statutes and regulations, as well as FINRA rules. They also
violated his firm’s own requirement of prior notice and approval
and its prohibition against its registered agents soliciting firm customers
to invest in the agents’ own companies.
Veron was also accused of making false statements in his annual compliance
attestations to the firm regarding his participation in private transactions
and outside business interests.
Veron neither admitted nor denied the allegations, but he consented to
the entry of findings and the resulting 10-month suspension and $40,000 fine.
What is Selling Away?
The allegations that led to Veron’s suspension are an example of
what’s known as “selling away.” Selling away happens
when a broker offers investments for sale that are not held or offered
by that broker’s affiliated firm.
Brokers may be motivated to engage in selling away as a way to avoid sharing
a commission with their firm. But because investments sold through selling
away have not been vetted and approved by the firm, they may expose the
investor to undisclosed risk. Investments sold this way are often fraudulent
Selling away may happen without the firm’s knowledge or approval.
Still, the firm is under a duty to supervise its brokers. Investors may
be able to hold the firm responsible for any losses related to selling
away by one of the firm’s brokers.
Funds lost to a selling away scheme need not be gone for good. The investment
fraud attorneys at Meyer Wilson have helped investors across the country
recover millions of dollars in losses related to selling away and other
unlawful broker practices.
To request a free initial consultation, call us at one of our offices located
across the country or
fill out our online request form.