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Articles Posted in Selling away

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Scott Reed (Scott Wayne Reed CRD# 3007033) is a previously registered broker and investment advisor whose most recent employer was First Financial Equity Corporation (CRD#: 16507). Prior to that, Reed spent four years at Wells Fargo Clearing Services, LLC (CRD#: 19616) in Scottsdale, Arizona. Reed has been in the securities industry since 1999. FINRA And Arizona Corporation Commission Investigate Scott Reed After learning of allegations concerning Reed following his termination from Wells Fargo, the Financial Industry Regulatory Authority (FINRA) began an investigation into Reed’s conduct.  Among other things, FINRA made the following findings of fact: Reed solicited individuals to invest in securities issued by a software and web development company based in Pasadena, California; Reed received selling compensation of $191,340 from the company for his role in soliciting and facilitating the investments; and Reed failed to provide Wells Fargo with prior notice or obtain the firm’s advance approval for his participation in these private securities transactions.Scott Reed (Scott Wayne Reed CRD# 3007033) is a previously registered broker and investment advisor whose most recent employer was First Financial Equity Corporation (CRD#: 16507). Prior to that, Reed spent four years at Wells Fargo Clearing Services, LLC (CRD#: 19616) in Scottsdale, Arizona. Reed has been in the securities industry since 1999. Continue reading ›

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Gary Hammond (Gary Wayne Hammond CRD# 2660432) is a previously registered broker and investment advisor who last worked for Hornor, Townsend & Kent, Inc. and MML Investors Services, LLC in Charlotte, North Carolina for brief periods in 2017, but spent the bulk of his career registered with MSI Financial Services, Inc., also located in Charlotte, North Carolina. Hammond worked in the industry since 1995. Gary Hammond Discharged By Employer For Selling Away And Violation Of Company Policies According to Hammond’s FINRA BrokerCheck Report, published by the Financial Industry Regulatory Authority (FINRA), in April 2017, MML Investors Services terminated Hammond “in connection with an internal review relating to company policy as to the handling of a customer complaint and selling away.”  “Selling away” is the industry term that refers to the practice of selling products not endorsed or sold by the firm.Gary Hammond (Gary Wayne Hammond CRD# 2660432) is a previously registered broker and investment advisor who last worked for Hornor, Townsend & Kent, Inc. and MML Investors Services, LLC in Charlotte, North Carolina for brief periods in 2017, but spent the bulk of his career registered with MSI Financial Services, Inc., also located in Charlotte, North Carolina. Hammond worked in the industry since 1995. Continue reading ›

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Tyler Delahunt (Tyler Dean Delahunt CRD#: 4419594) is a formerly registered broker and investment advisor whose last known employer was Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of Atlanta, Georgia. His previous employers include PFS Investments Inc. (CRD#:10111) of Duluth, Georgia and Raymond James Financial Services, Inc. (CRD#:6694) of Alpharetta, Georgia.  Delahunt has been in the industry since 2001. Tyler Delahunt Discharged By Merrill Lynch For “Selling Away” According to Delahunt’s CRD Report, published online by FINRA, Merrill Lynch discharged Delahunt in August 2020. The allegations against Delahunt in connection with his discharge involve “improper solicitation of clients related to an outside investment and participating in financial arrangements involving clients.” Solicitation of clients for an outside investment not approved by a broker’s employing firm is often referred to in the securities industry as “selling away”. After Delahunt’s Discharge, FINRA Initiated an Investigation FINRA began an investigation after receiving paperwork from Merrill Lynch with the reasons for his termination.  According to FINRA’s Letter of Acceptance, Waiver, and Consent with Delahunt (AWC), FINRA was investigating “whether Delahunt had solicited clients in a private securities transaction without approval of Merrill Lynch and whether he had accepted loans or other funds from clients without notice to his firm.” The AWC indicates that Delahunt failed to respond to FINRA’s inquiry, in violation of FINRA Rules.Tyler Delahunt (Tyler Dean Delahunt CRD#: 4419594) is a formerly registered broker and investment advisor whose last known employer was Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of Atlanta, Georgia. His previous employers include PFS Investments Inc. (CRD#:10111) of Duluth, Georgia and Raymond James Financial Services, Inc. (CRD#:6694) of Alpharetta, Georgia.  Delahunt has been in the industry since 2001. Continue reading ›

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Michael Anthony Tavel (CRD# 4862463) was recently suspended from acting as a broker by the Financial Industry Regulatory Authority. Tavel was registered with broker-dealer LPL Financial LLC from 2004-2019, operating out of Indianapolis, Indiana. Tavel was also providing investment advice through Charter Advisory Corporation, an SEC-registered Investment Adviser, as well as providing tax services and insurance products through Tavel Insurance & Financial Services, LLC. Tavel Consented To 18-Month Suspension And $20,000 Fine According to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), from 2017-2019, Michael Tavel participated in improper private securities transactions, at least one of which Tavel recommended “without having  a reasonable basis to believe that it was suitable.” Specifically, FINRA states the following in its AWC: Tavel agreed to act as a placement agent for a private issuer purportedly in the business of making commercial loans . . . In 2018, the issuer and its chairman were charged by the SEC with fraud and [the investor] lost his entire investment. Tavel agreed to act as a placement agent for an oil-extraction company . . . Tavel received a total of $19,700 in commissions for the transactions. Tavel failed to provide a written disclosure to LPL in connection with any of these investments, which were done away from the firm, and falsely attested to LPL in August 2018 that he had not solicited any unapproved private placements.Michael Anthony Tavel (CRD# 4862463) was recently suspended from acting as a broker by the Financial Industry Regulatory Authority. Tavel was registered with broker-dealer LPL Financial LLC from 2004-2019, operating out of Indianapolis, Indiana. Tavel was also providing investment advice through Charter Advisory Corporation, an SEC-registered Investment Adviser, as well as providing tax services and insurance products through Tavel Insurance & Financial Services, LLC. Continue reading ›

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Sumitro Pal (CRD# 4763364) is a former registered broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of Bethesda, MD, where he was registered from 2009-2018. Pal has worked in the securities industry since 2004. Currently, Pal is the subject of four pending customer disputes, filed between November 2018 and November 2020, which allege damages totaling $1,575,000. Investors’ allegations range from “selling away” to “unsuitability” and “misappropriation of funds for an outside investment.”  The dates of the alleged actions range from October 2007 through September 2018.  Two previous customer disputes were settled for a total of $3,625,000.00. The most recent dispute was filed on 5/4/2018, and alleged, “inter alia, Misappropriation of funds for an outside investment - Oct 2017 to Feb 2018.” This claim was settled for $2,500,000.00.  The earlier claim was filed 9/26/2017 and had similar allegations that “the FA invested his retirement money in high risk corporate bonds including an over-concentration of bonds in the energy sector and also that the FA misrepresented the losses of his investments. 01/01/2013-08/31/2017.” This claim was settled for $112,500.00.Sumitro Pal (CRD# 4763364) is a former registered broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of Bethesda, MD, where he was registered from 2009-2018. Pal has worked in the securities industry since 2004. Continue reading ›

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Nicholas Palumbo (Nicholas R Palumbo CRD:# 1069948, aka “Nicholas Richard Palumbo” And “Nick Palumbo”) is a previously registered broker and investment advisor whose last known employer was Park Avenue Securities LLC (CRD#:46173) of Armonk, NY. His previous employers include Guardian Investor Services Corporation (CRD#:6635 of New York, New York, SMA Equities, Inc. (CRD#:3960), and First Investors Corporation (CRD#:305) He has been in the business since 1983. Palumbo has only one disclosure, his dismissal from Park Avenue Securities on 4/17/2020. He was permitted to resign after an investigation into an unapproved private securities transaction in which he was involved. Furthermore, he also solicited clients for this private transaction.Nicholas Palumbo (Nicholas R Palumbo CRD:# 1069948, aka “Nicholas Richard Palumbo” And “Nick Palumbo”) is a previously registered broker and investment advisor whose last known employer was Park Avenue Securities LLC (CRD#:46173) of Armonk, NY. His previous employers include Guardian Investor Services Corporation (CRD#:6635 of New York, New York, SMA Equities, Inc. (CRD#:3960), and First Investors Corporation (CRD#:305) He has been in the business since 1983. Continue reading ›

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John Krohn (John Michael Krohn CRD#:2722975) is a former registered broker and investment advisor whose last known employer was Principal Securities, Inc. (CRD#:1137) of West Des Moines, IA. He has been in the industry since 1996, when he began at the firm. Krohn is the subject of three client disputes with similar allegations. They first dispute was filed on 2/25/2019, with allegations that he “solicited large investments from them into venture capital companies owned, managed, or controlled at least in part by Krohn.” The client requests damages of $28,000,000.00. The second claim, filed on 2/25/2020, alleges that the firm failed to supervise John Krohn, which included selling away and his outside business activities that caused them to suffer losses. This client requests damages of $1,200,000.00.John Krohn (John Michael Krohn CRD#:2722975) is a former registered broker and investment advisor whose last known employer was Principal Securities, Inc. (CRD#:1137) of West Des Moines, IA. He has been in the industry since 1996, when he began at the firm. Continue reading ›

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Bill Hightower (William Andrew “Bill” Hightower CRD#: 2152369) is a former registered broker and investment advisor whose last known employer was Legacy Asset Securities, Inc. (CRD#:47644) of Houston, TX. His previous employers include UBS Financial Services Inc. (CRD#:8174) and RBC Dain Rauscher Inc. (CRD#:31194), also of Houston, and A. G. Edwards & Sons, Inc. (CRD#:4), of St. Louis, MO. He has been in the industry since 1991. The Securities & Exchange Commission (SEC) found that Bill Hightower was, while employed for Legacy Asset Securities, also the CEO of Hightower Capital Group (HCG). HCG was his own private and unregistered company where he conducted business away from Legacy. The SEC investigation found that Hightower transferred sums of money from two clients into HCG under the guise of “investment.” On 3/14/2015, Hightower transferred $800,000 into the HCG accounts. Then on 1/14/2015, he transferred $900,000 from a second client’s account into HCG. Both transfers were used to pay previous “investors” in HCG, as well as for personal expenses.Bill Hightower (William Andrew “Bill” Hightower CRD#: 2152369) is a former registered broker and investment advisor whose last known employer was Legacy Asset Securities, Inc. (CRD#:47644) of Houston, TX. His previous employers include UBS Financial Services Inc. (CRD#:8174) and RBC Dain Rauscher Inc. (CRD#:31194), also of Houston, and A. G. Edwards & Sons, Inc. (CRD#:4), of St. Louis, MO. He has been in the industry since 1991. Continue reading ›

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Narinder Singh (Narinder Kaur Singh CRD:# 3100308, aka “Narinder Dutt”) is a previously registered broker whose last known employer was Farmers Financial Solutions, LLC (CRD#:103863) of Sacramento, CA. Her previous employers include Proequities, Inc. (CRD#:15708), Transamerica Financial Advisors, Inc (CRD#:16164) and Oneamerica Securities, Inc. (CRD#:4173), all of Elk Grove, CA.  She has been in the industry since 1998. FINRA’s investigation began in October of 2019 after both Transamerica and Proequities filed Form U5 amendments indicating that there was a pending arbitration filed by a customer alleging that Singh invested their funds into a fraudulent investment. Farmers’ then terminated Singh’s registration with a Form U5 filed on November 6, 2019. Singh initially cooperated with the FINRA investigation, but on August 18, she indicated in a phone call with FINRA staff that she would not provide on-the-record testimony at any time. Therefore, FINRA barred Singh indefinitely as of 8/28/2020.Narinder Singh (Narinder Kaur Singh CRD:# 3100308, aka “Narinder Dutt”) is a previously registered broker whose last known employer was Farmers Financial Solutions, LLC (CRD#:103863) of Sacramento, CA. Her previous employers include Proequities, Inc. (CRD#:15708), Transamerica Financial Advisors, Inc (CRD#:16164) and Oneamerica Securities, Inc. (CRD#:4173), all of Elk Grove, CA.  She has been in the industry since 1998. Continue reading ›

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Jesse Kovacs (Jesse Todd Kovacs CRD# 5047161) is a currently suspended broker who last worked for PTS Brokerage, LLC in their Forked River, New Jersey branch office. Kovacs was suspended for participating in a private securities transaction (selling away) without giving advance written notice to his firm. Jesse Kovacs Disclosures Jesse Kovacs has been in the securities industry since 2006. Before joining PTS Brokerage in 2019, Kovacs worked for The O.N. Equity Sales Company, Hornor, Townsend & Kent, Inc., and other broker-dealers. Kovacs has 6 disclosures on his publicly-available FINRA BrokerCheck report:Jesse Kovacs (Jesse Todd Kovacs CRD# 5047161) is a currently suspended broker who last worked for PTS Brokerage, LLC in their Forked River, New Jersey branch office. Kovacs was suspended for participating in a private securities transaction (selling away) without giving advance written notice to his firm. Continue reading ›

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