FINRA Questions Darrell Rideaux on “Selling Away”
According to the Financial Industry Regulatory Authority (FINRA), on February 16, 2018, the regulator issued a letter of Acceptance, Waiver and Consent barring Darrell W. Rideaux (CRD #5211032, Placentia, California) from association with any FINRA member in all capacities.
Without admitting or denying the findings, Rideaux consented to the sanction and to the entry of findings that he refused to appear to provide FINRA with on-the-record testimony in connection with its investigation of civil claims filed against him alleging that he solicited private placement investments that resulted in financial losses to his investors.
According to his FINRA BrokerCheck report, Rideaux was registered with NMS Capital Advisors in Beverly Hills, CA from August 2016 through May 2017. Prior to that, he worked form Morgan Stanley in Los Angeles, CA from August 2013 until March 2015. Rideaux has two pending customer complaints listed on his broker report. Allegations include, “soliciting investment opportunities that were unauthorized by the firm” and “misrepresented a non-firm product.”
For FINRA’s full findings see FINRA Case #2016049407601.
The White Law Group is investigating what liability that Rideaux’s former employers may have for his actions. 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 push.
If a registered broker “sells away” from their firm, the brokerage firm may 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 Darrell Rideaux 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.