Securities Lawyers Blog
Our firm is investigating claims made by The Financial Industry Regulatory Authority (FINRA) against broker Joseph Likens (Likens). According to brokercheck, in Likens failed to respond to FINRA’s requests for information resulting in a bar. FINRA stated that Likens refused to appear for on-the-record testimony related an investigation into allegations that he may have engaged in private securities transactions. At this time the scope of Likens activities and the specific investments are not reported. However, Likens disclosed outside business activities involving PWA Network.
The FINRA investigation followed Likens’ termination from his previous employer LPL Financial LLC (LPL) in May 2016. Likens worked out of a d/b/a Cornerstone Wealth Management. At that time, Likens was terminated after allegations were made that he engaged in trading away from the firm. In November 2016, a customer alleged that Likens sold away from the firm an investment made in 2011 causing $120,000 in damages. The claim is currently pending.
The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. Often times brokers who engage in this practice use outside businesses in order to market their securities.