FINRA Bars Dennis Farrah for Allegedly Selling Away
According to the Financial Industry Regulatory Authority (FINRA), the regulator has reportedly barred financial advisor Dennis Farrah from the securities industry. This comes after the Colorado Securities Division reportedly revoked Farrah’s Colorado Sales Representative license on January 31, 2018, as a result of his alleged selling away of securities without knowledge or prior approval of his Firm.
According to the Letter of Acceptance, Waiver & Consent, on February 8, 2018, FINRA sent to Farrah a request for documents and information seeking information and documents about the alleged private securities transactions at issue. The requests included the particulars of the investments and compensation received, communications with investors, and marketing materials used, among other topics.
FINRA states in the AWC that Farrah’s attorney sent a letter to FINRA on Farrah’s behalf. He reportedly acknowledged receipt of the request, and he provided no responsive documents or information. Instead, Farrah’s attorney stated in the letter that Farrah would not provide a response to the February 8, 2018 request. Consequently, Farrah has been barred from the securities industry.
According to his FINRA BrokerCheck report, Farrah was registered with Taylor Capital Management in Aurora, CO from October 2013 until December 2017. Farrah has 7 customer complaints listed on his broker report.
Allegations include “Breach of Fiduciary Duty; Negligence; Violation of Colorado Securities Laws in that Farrah sold $250,000 Madyson REIT shares to claimant based upon misrepresentations of material fact and omissions of material fact,” among others.
The White Law Group is investigating the liability that Farrah’s former employer, Taylor Capital Management, may have for his actions in regards to his outside business activities.
When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.”
Some brokers, looking to supplement their income, will go outside the traditional market, trying to find other products to sell.
If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
If you have invested with Dennis Farrah and are concerned about your investments, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our offices at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.