Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Michael Olinde (Olinde), currently associated with Capital Financial Services, Inc. (Capital Financial), in May 2017, was discharged from his employer LPL Financial LLC (LPL) due to allegations that he violated the firm’s policies regarding outside business activities. Thereafter, according to Olinde’s BrokerCheck, Olinde has been subject to a FINRA investigation regarding his outside business activity.
Engaging in undisclosed outside business activities represents a risk to brokerage firms that the advisor may be engaging in unmonitored securities related businesses. 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”.
In this case it is unclear what sort of business activities Olinde was engaged in. However, his disclosures include many businesses including: 1) Olinde Brothers Properties – a commercial building partnership; 2) Olinde Financial Group – his d/b/a for brokerage activity; 3) Olinde Investment Holdings LLC; 4) The Massad Olinde Group; 5) Alpha Consulting Group; 6) Prciniple Matters, LLC – a radio program; 7) Avive Nutraceuticals, LLC – partner and board member; 8) Olinde Management, LLC – resendential properties rentals; 9) K & M Olinde Farms; 10) M202 – real estate business.