Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Matthew Higgins (Higgins) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Higgins was employed by Barclays Capital Inc. at the time of the activity. If you have been a victim of Higgins’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on December 03, 2024.
Without admitting or denying the findings, Higgins consented to the sanctions and to the entry of findings that he participated in private securities transactions without providing prior written notice to his member firm. The findings stated that Higgins participated in private securities transactions by soliciting two investors to invest a total of $150,000 in partnership interests issued by a crypto asset investment fund he co-founded. In addition, Higgins solicited one of those investors and an additional investor to invest $200,000 in promissory notes issued by a crypto asset mining company he co-founded. Higgins introduced the investment opportunities to the investors, answered their questions about the fund or company, sent the investors the offering documents, and facilitated the transactions. Higgins did not receive any commissions for soliciting these transactions or any compensation in connection with the investment fund or the crypto asset mining company. None of the investors were customers of the firm.
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. In the financial industry, “selling away” refers to the sale of unapproved investment products, fake schemes that conceal stolen funds, and other fraudulent activities, representing a significant violation of securities regulations. 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. Although certain investments may have some validity, they frequently devolve into Ponzi schemes or involve advisors unlawfully diverting 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. To ensure proper supervision of brokers, firms must establish procedures for monitoring advisors’ actions and engagements 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.
Higgins has been in the securities industry for more than 20 years. Higgins has been registered as a Broker with Barclays Capital Inc. since 2018.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
