California Selling Away Lawyer

California Selling Away Attorney

It is unlawful for broker-dealers and investment advisers to transact in securities that are not approved or offered by the firm where they are registered without written notice. FINRA Rule 3280 prohibits this behavior because unapproved securities are more difficult for brokerage firms to supervise. An experienced California selling away lawyer can help victims.

Unethical broker-dealers and investment advisers can take advantage of the lack of oversight to sell investors fraudulent investments, private placements, and promissory notes that benefit the broker-dealer or investment adviser with high commissions or that may be completely fraudulent. The legal team at Rosenberger + Kawabata can help you figure out what to do next.

Brokerage firms have an obligation to prevent such behavior, and if the firm has failed to properly supervise the employee engaged in surreptitious selling away, it can be held responsible for losses incurred.

FAQs About Selling Away in California

What Is the Penalty for Selling Away?

The penalty for selling away in California depends largely on the circumstances of the offense. Selling away is the act of engaging in private transactions without a broker-dealer’s approval. The penalties for engaging in such acts can range anywhere from significant fines and suspended licenses to a total expulsion from the securities industry and even legal action. If your investment adviser has engaged in this behavior, you should contact a lawyer promptly.

What Is the Prohibited Practice of Selling Away?

The prohibited practice of selling away involves a registered broker selling investments and/or securities to a client that are not actually approved or offered by the firm that they work for. Essentially, it’s a form of investment fraud that the brokerage firm could be held liable for, as they have a legal duty to ensure this kind of behavior does not happen. If it has happened and you want to seek legal action, speak with a selling away lawyer.

What Is the FINRA Rule for Selling Away?

FINRA Rule 3280 is the rule that prohibits selling away. Specifically, the Financial Industry Regulatory Authority’s rule 3280 prohibits any registered financial brokers or representatives from selling away private securities or engaging in financially inappropriate or unapproved transactions.

They can only engage in approved transactions once they have provided written notice and been given prior approval from the brokerage firm in which they are employed. An experienced investment fraud lawyer can provide you with more information.

What Is the Meaning of Selling Away?

In terms of investment fraud, selling away occurs when a financial broker or adviser engages in the selling of investments that are not approved or offered by the brokerage firm that employs them. This is often done without the brokerage firm’s knowledge or involvement, but they may still be held liable for illegal actions done by their employees under their supervision.

Reach Out to a Selling Away Lawyer Today

When you put your money and your faith in a brokerage firm, you expect your financial security to be respected. The last thing you want is for a wayward broker to gamble with your money on an investment that was not approved by their brokerage firm or even offered as part of their services. A good lawyer can help you figure out what went wrong with your investment and where the blame really lies.

Selling away an unapproved investment carries a great deal of undisclosed risk that your broker likely won’t share with you since their investment was made without your approval or without the approval of their firm. A rogue broker can cause you all sorts of financial trouble that you may never have expected.

The legal team at Rosenberger + Kawabata understands how difficult it can be to have your financials put at risk over one person’s poor decision-making skills. If this ever happens to you, you should make sure you take the right steps to protect yourself and ensure you are properly compensated for damages. If your investment adviser engaged in selling away, contact Rosenberger + Kawabata.