Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Robert Daly (Daly) has been accused by a financial regulatory of engaging in private securities transactions a/k/a selling away. Daly was terminated by his employer and sanctioned by a regulator concerning accusations of engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Daly was employed by Xtellus Capital Partners, Inc. (Xtellus Capital) at the time of the activity. If you have been a victim of Daly’s alleged misconduct our firm may be able to assist you in recovering funds.
According to Daly’s disclosures he is also engaged in several OBAs including Latigo Ventures, a financial consulting and capital raising business venture. Also disclosed are The Latigo Group, Lipper/Daly Productions Latigo Filsm, Ava Living Recovery, and United Friends of Children. It is unknown whether the accusations relate to any of these entities or businesses.
In October 2024 FINRA barred Daly after Daly consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA during an investigation that originated from a regulatory tip it received related to possible undisclosed private securities transactions.
In addition, Daly also has a customer complaint in September 2024 claiming that purchases in First Republic Bank shares were not in the clients’ best interests. 2021. The claim is currently pending.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products, fake investments that cover misappropriated funds, and other fraudulent behavior – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of 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. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction 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.
Daly entered the securities industry in 1998. From February 2016 until March 2023 Daly was registered with Morgan Stanley. From May 2023 until October 2024 Daly was registered with Xtellus Capital out of the firm’s New York, New York branch office location.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. Investors 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 and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.