According to InvestmentNews, the branch manager of LPL Financial in Houston, James “Jeb” Bashaw was recently terminated in response to several allegations that he conducted private securities without the approval of the firm—an act commonly known as “selling away.”
Brokerage firms generally prohibit their brokers from engaging in securities transactions that are not approved by the firm. For example,typically, if a broker wanted to sell unapproved securities products they would have to provide a written disclosure and obtain written approval from the firm. Ordinarily, “Selling away” not only violates brokerage firms’ internal policies, but often violates securities laws and regulations.
Investment News reports that Bashaw was terminated from LPL for “failing to follow firm policies.”
According to reports, Bashaw was ranked as one of Texas’ top financial advisers in 2011 by Barron’s Magazine, with assets of $3.8 billion.
The foregoing information, which is all provided on FINRA’s website and Investmentnews.com, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For a free consultation with a securities attorney, please call the firm at (312)238-9650. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit www.WhiteSecuritieslaw.com.