Securities Lawyers Blog
The investment lawyers of Gana Weinstein LLP are investigating the LPL Financial LLC’s (LPL) termination of former broker Christopher Russell (Russell) working out of the Huntsville, Alabama office. LPL terminated Russell in November 2016. According to the firm’s Financial Industry Regulatory Authority (FINRA) BrokerCheck filing the firm stated that Russell was in “Violation of Firm policy regarding private securities transactions.” No other disclosure concerning the extent and nature of the activity is disclosed. However, Russell has disclosed several outside business activities including his d/b/a Cadence Investment Services. Russell has also disclosed Cadence Bank described as a private bank. Russell has also disclosed involvement with the Huntsville Chamber of Commerce and the Community Foundation of Huntsville.
The providing of loans, selling of promissory notes, or recommending investments outside of the firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. Often times, brokers sell promissory notes and other investments through side businesses as accountants, lawyers, real estate agents, or insurance agents to clients of those side practices.
Russell entered the securities industry in 2005. From May 2008 until March 2013, Russell was associated with Wells Fargo Advisors, LLC. Then, from May 2014 until November 2016 Russell was associated with LPL out of the firm’s Huntsville, Alabama office location.