Why Do Brokers Sell Away?

Investor Claims Is What We Do - All Day, Every Day

Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
  • Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million

Why Do Brokers Sell Away?

If you are a victim of investment misconduct by your stockbroker and come to learn that he or she may have sold you an investment that was not approved by the brokerage firm, you may have a claim against the firm for what is known as selling away.

Selling away is when a broker solicits investors to purchase securities or investments that are not held, offered, or approved by a brokerage firm.

What would motivate a broker to sell an investment that’s not approved by the firm? Money. More specifically, commissions. Since the investment is not on the approved product list, the broker does not have to share the commission with the brokerage firm.

Unfortunately, most cases of selling away that we see in our office involve private placements, promissory notes, and other non-public investments that end up resulting in substantial investment losses. As a general rule, selling away is a violation of the securities laws and typically, the outside investment itself, may be fraudulent.

When selling away happens, it may be an indication that the brokerage firm failed to adequately supervise the broker. Although the firm may claim to be unaware that one of its brokers is offering unapproved outside investments, brokerage firms do have a basic duty to properly supervise the actions of their employees. In the case of selling away, it may be possible to hold the brokerage firm responsible for the losses sustained by victims of stockbroker misconduct or fraud if the firm failed to adequately supervise its broker.

If you found yourself a victim of selling away, an experienced securities fraud attorney at Meyer Wilson may be able to help you recover your losses. You can call us any time at (800) 738-1960 for a free and confidential case evaluation.

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  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America┬« for over Ten Years Running
  • David Meyer is President of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
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TRUSTED BY OVER 1,000 INVESTORS

Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
  • “The communication throughout the process was on par - and they took the time to indulge me with the various questions and opinions.”

    - R.G.
  • “What I truly appreciated was getting a great result for my Mom with limited involvement/stress on her.”

    - S.W.
  • “We went to arbitration with the other respondent and I got to see firsthand the level of professionalism and expertise the Meyer Wilson firm can deliver.”

    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
  • “Right from the start, you had the passion and desire to win this case for us. I have never worked with an attorney or firm as compassionate as yours. I would highly recommend your firm to anyone.”

    - G.A.

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