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 trading platform.
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 away,” please 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 investment fraud.
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: