Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Jordan Allen (Allen) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Allen was employed by Fidelity Brokerage Services LLC at the time of the activity. If you have been a victim of Allen’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on November 08, 2024.
Without admitting or denying the findings, Allen consented to the sanctions and to the entry of findings that he participated in private securities transactions by placing trades in a customer’s account held at another member firm, without providing notice to his member firm. The findings stated that Allen and the customer had a personal relationship, and the customer provided Allen with his log-in credentials to make transactions in the outside account. In total, Allen executed 1,507 trades in the account, including options transactions, totaling $726,585 in gross value. Allen did not receive compensation for the transactions. When the trading came to his firm’s attention, Allen initially misled the firm and stated that he had only been conducting paper trades in the account.
We specialize in representing victims of fraud when financial advisors take loans from clients or facilitate securities transactions through OBAs. In the financial industry, “selling away” refers to the sale of unapproved investment products, fake schemes that conceal stolen funds, and other fraudulent activities, representing a significant violation of securities regulations. The industry defines “selling away” as a practice where a financial advisor offers investments in securities, companies, or promissory notes that have not been authorized by their brokerage firm. While a few of these investments might be valid, many end up as Ponzi schemes or involve advisors illegally converting client funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To adequately supervise their brokers, firms must implement systems that track advisors’ activities and communications with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Allen has been in the securities industry for more than 2 years. Allen has been registered as a Broker with Fidelity Brokerage Services LLC since 2022.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
