Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating multiple claims that advisor Derrick Trussell (Trussell) has engaged in an investment fraud scheme by selling products not approved by his brokerage firm. Trussell, formerly registered with PFS Investments Inc. (PFS Investments) out of San Antonio, Texas has been accused by at least four customers of engaging in unapproved activity.
In May 2017 PFS Investments terminated Trussell after alleging that the firm received allegation that the representative engaged in an unapproved outside business activity and/or an undisclosed private securities transaction in which a client’s funds were used to purchase securities not offered by PFSI without the client’s knowledge or consent.
Thereafter in August 2018 FINRA barred Trussell after FINRA stated that Trussell failed to respond to FINRA request for information.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in fraudulent securities sales or misappropriation schemes. Trussell’s activities in the sale of unapproved investment products – 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.