Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Mitchell Rock (Rock) 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 Rock was employed by Ameriprise Financial Services, LLC at the time of the activity. If you have been a victim of Rock’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $2,000,000.00 on October 31, 2024.
Claimant alleges that Respondent Rock participated in a private securities transaction without providing written notice to his firm about his role in the sale of shares of Facebank to Claimant on behalf of John Textor, the issuer.
Our law firm has extensive experience representing defrauded victims when their advisors accept loans from clients or conduct securities sales through OBAs. “Selling away” is the industry term for the sale of unauthorized investments, fraudulent financial schemes that cover up misappropriated funds, and other illicit activities, all of which constitute a serious violation of securities laws. In the industry, “selling away” describes a financial advisor soliciting investments in companies, promissory notes, or other securities that lack prior approval from their affiliated brokerage firm. Some of these investments may appear legitimate, but they often lead to Ponzi schemes or advisors engaging in fund misappropriation.
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. Firms are required to have protocols in place to oversee their brokers by tracking each advisor’s activities and public interactions. 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.
Rock entered the securities industry in 1986. Rock has been registered as a Broker with Ameriprise Financial Services, LLC since 2020.
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.
