Selling Away / Affinity
United States Securities and Selling Away Attorney
Representing the Investor – Selling Away
Here’s the scenario: you relied upon the advice of your broker and were persuaded to invest in a private placement, real estate venture or other investment not offered by your broker’s firm. But you were led to believe the firm was aware of the investments. After a period of time, the broker tells you that the so-called investment went belly-up. You start wondering whether the advice you received was prudent and whether your broker may be guilty of some type of misconduct.
At Kaufmann Gildin & Robbins LLP, it’s our job to find out. Our firm has extensive experience dealing with customer complaints against brokers, including those involving selling away and affinity fraud.
The fact is, even though your broker did not sell you the investment from his office at the firm, what many people, including brokers, don’t know is that the firm, in addition to the broker, may be liable for the losses you incurred. Why? Because it can be argued that the firm empowered the broker with the “apparent authority” to engage in these outside business activities. Because of this, the firm may be liable for the broker’s misconduct. Of course, it’s never quite as simple as that, and that’s where we come in.
Contact us today if you have suffered losses as a result of your broker’s outside activities or selling away.
Representing the Investor – Affinity Fraud
Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly or professional groups. These types of scams can be difficult to uncover, because in many instances the “scammers” themselves are fellow members of the organizations to which the defrauded investors belong.
These type of scams cost unsuspecting investors millions of dollars every year. They almost always promise spectacular returns, and are often touted as being “can’t miss” deals because the broker claims to have access to special information. Don’t fall for it.
If you think you may have been the victim of an affinity fraud scam, contact our New York securities selling away attorneys immediately for smart legal advice on how to proceed.
Defending the Broker
As a broker, you have a lot at stake when you decide to engage in selling away. The fact is, it could cost you a lot more than just your job – it could cost you your career. You may honestly believe the outside investment opportunity is good for your clients, not knowing that it’s a scam.
And when the complaints start to come in, your firm will try to wash its hands of the case and argue that you acted alone and without their consent. If you alone are deemed to be responsible for your customers’ losses (and, absent written pre-approval by the firm allowing outside sales activity, there’s a good chance you will), there’s a high probability your firm will fire you and disclose that your termination was the result of unreported outside business activity.
That type of disclosure on your record could make it very difficult to remain in the securities and investment industry. It will almost certainly give rise to a regulatory investigation.
With so much at stake, don’t take chances. If you’re facing a complaint that involves selling away, contact our New York securities selling away attorneys today for knowledgeable legal advice and experienced representation. We know securities law and securities arbitration inside and out and we have significant experience defending brokers and brokerage firms.
The New York lawyers at Kaufmann Gildin & Robbins LLP provide astute advice and counsel and dedicated, effective representation to investors and brokers throughout New York, the United States, and internationally.