Former Questar Capital Broker Adam K. Veron Suspended and Fined by FINRA After Selling Away Allegations
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 themselves.
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.
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