Securities Lawyers Blog
The Financial Industry Regulatory Authority (FINRA) sanctioned broker Marc Evans (Evans) concerning allegations that between October 2006 and October 2012, Evans participated in private securities transactions, also referred to as “selling away”, without prior approval of his brokerage firm. In addition, FINRA found that Evans did not disclose his membership on the board of directors of a corporation.
Marc W. Evans entered the securities industry in 1978. From November 2005 through December 2012, Evans was registered with brokerage firm Sanders Morris Harris, Inc. (Sanders Morris). Thereafter, Evans became associated with Wunderlich Securities, Inc.
FINRA alleged that between October 2006 and October 2007, Evans introduced 11 of his brokerage clients to invest in a company called Global Safety Labs, Inc. (GSL), a Tulsa, Oklahoma company. GSL develops and manufactures fire-retardant products. FINRA found that the eleven clients ultimately invested a combined total of $3,430,000 in GSL stock shares. FINRA found that Evans received commissions totaling $79,500 from GSL from these sales.
FINRA also found that in November 2007, Evans accepted a position on the board of directors of GSL. Evans served on the board until November 2012. According to FINRA, Evans verbally informed his immediate supervisor of his board position with GSL but did not complete the required disclosure form or otherwise inform his compliance department of the outside activity.
In addition, FINRA alleged that between April 2007, and October 2012, Evans solicited sales of limited partnership interests in eleven real-estate limited partnerships to 15 individuals and entities. The eleven limited partnerships are: The Colonies at Hillside, LP; Nickel Creek Apartments, LP; Case Vintage on Yale, LP; Case 2009 Commercial Properties, LP; The Park at Westpointe, LP; The Park at Westpointe Il, LP; The Park at Mission Hills, LP; The Park at Mission Hills II, LP; Tuscany Hills at Nickel Creek, LP; The Park at Coulter, LP; and Tuscana Bay Apartments, LP.
Evans sales totaled $5,705,250, and he received commission payments totaling $56,572 for the sales. FINRA found that these securities transactions Evans did not seek or obtain written approval from Sanders Morris to participate in the transactions. In addition, FINRA found that Evans was required by the firm to complete a compliance questionnaire each year which inquired if the respondent had participated in any private securities transactions. FIRNA found that Evans falsely responded to that question in the questionnaires he completed from 2007 through 2012.
Selling away activities usually involve a high degree of risk because the investments are not being made through the brokerage firm. Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of selling away in high risk securities. Our consultations are free of charge and the firm is only compensated if you recover.