Selling Away Lawyers

Former Customer of Ex-Merrill Lynch Broker Greg Whelan Alleged Selling Away Losses. Our Selling Away Lawyers Are Investigating

Selling away can lead to serious investor losses. At Shepherd Smith Edwards and Kantas (investorlawyers.com), our Selling Away Lawyers are speaking to former customers of financial advisor Gregory DePaul Whelan who have experienced portfolio losses that they suspect may involve investments that were never approved by his then-brokerage firm Merrill Lynch, Pierce, Fenner & Smith.

Greg Whelan, who is now a Kovack Securities registered representative, resigned from Merrill Lynch last year following allegations of selling away and conflicts of interest. His CRD notes that at least one customer dispute alleging selling away, unsuitability, and misrepresentations that was filed concluded with a $3.5M settlement. Whelan denies wrongdoing.

FINRA Rule 3280 specifically doesn’t allow selling away, which involves a registered representative taking part in outside activities or private securities transactions without getting the broker-dealer’s approval first. Selling away involving unvetted products can expose an investor to losses, as well as to fraudulent investments or scams.

Broker-dealers can be liable for selling away losses impacting its customers even if they didn’t know that their financial advisor was engaged in unapproved transactions. It is brokerage firms’ responsibility to put in place procedures and rules to prevent or detect this type of financial advisor misconduct.

Unfortunately, there are registered representatives who engage in selling away in order to earn higher commissions, regardless of the risk to customers. Other brokers may purposely seek to defraud investors. Still, other registered representatives do so out of ignorance or negligence. Regardless of the reason, if you were a victim of selling away, you may be able to pursue damages for your losses.

Contact Our Selling Away Lawyers Today

For over 30 years, Shepherd Smith Edwards and Kantas Selling Away Lawyers have been representing investors who suffered losses from unauthorized or unapproved transactions. We have worked with thousands of clients to collectively recoup many millions of dollars from the brokers and investment advisers that caused them serious financial harm.

Some possible signs of selling away:

Your financial advisor tells you the investment is an opportunity the broker-dealer doesn’t know about.
You are paying the broker or a third party, rather than the brokerage firm, for the investment.
Documentation, including account statements, look different from what you usually get from the brokerage firm.

You want to work with knowledgeable selling away attorneys who can maximize your chances for a full recovery. This will usually require filing a FINRA lawsuit against the broker-dealer and/or investment adviser.

It is important that the Selling Away Lawyers you retain has experience in this arbitration forum, which requires different approaches and strategies than the court for increasing your chances of a successful outcome.