Ex-Park Avenue Securities Stockbroker Was Allowed to Resign By Broker-Dealer Following Probe
If you suffered losses while working with Nicholas Richard Palumbo, our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) would like to talk to you. The previously registered financial representative is based in New York and he was a Park Avenue Securities broker from 1999 to 2020.
Nicholas Palumbo was allowed by the firm to step down in the midst of an investigation into whether he did not disclose an unapproved private securities transaction in which he solicited clients to participate. This practice is known as selling away. It typically involves a broker recommending that clients buy securities not held or offered by their brokerage firm of record.
Selling away can be grounds for an investor claim should losses result. It also is a violation of securities laws when unapproved by a firm.
The former broker, who has worked 35 years in the industry, is also the founder and CEO of Trivium Financial Group in Armonk. According to its website, Trivium Financial Group offers securities products and advisory services via Park Avenue Securities.
Previous broker-dealers where Nicholas Palumbo has been registered include Guardian Investor Services Corp., SMA Equities Inc., and First Investors Corp.
SSEK Law Firm can help you determine whether they have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover your losses. Contact our New York investor lawyers at (716) 261-3529.
The Risks Involved in Selling Away
Selling products that were never properly vetted or approved by a firm can increase the chances of losses for a customer. That is because the product may be unregistered, which brings inherent risks to investors, or even fraudulent.
Yet, unfortunately, there are brokers who still engage in unapproved acts of selling away. Not only does it allow them to conduct business outside the scrutiny of their firm, but also it may give them a chance to earn high commissions, especially if the products they are soliciting are risky or volatile in nature.
Failure to Supervise and Selling Away
Even if a firm wasn’t aware that one of its registered representatives engaged in selling away, it may still be held liable for damages because it has a duty to properly oversee its brokers and investment advisors.
Contact our experienced investment fraud attorneys at SSEK Law Firm who have fought for victims of selling away and other types of securities fraud all over the United States. Request your free, no-obligation case consultation today.