FINRA Complaint Alleges Dennis Allen Hayes was “Selling Away”
According to FINRA, the regulator’s Department of Enforcement has filed a complaint on January 11 against former financial advisor, Dennis Allen Hayes, for allegedly “selling away.”
The complaint alleges that between March 2010 and June 2016 while he was associated with Newbridge Securities Corporation in Boca Raton, FL, Hayes reportedly recommended that nine investors, eight of whom were purportedly Firm customers, invest a total of $2.7 million in five companies, and allegedly facilitated those investments.
According to the complaint, Hayes allegedly did not provide any written or any other notification to the Firm regarding his participation in these private securities transactions. The investors reportedly suffered losses of at least $2.3 million, after one of the companies (referred to as KIInc. in the complaint) filed for bankruptcy and the other companies ceased operations.
Further, from June 2011 through June 2016, Hayes reportedly used two personal email addresses to correspond with four customers about their Firm accounts, including text messages with one customer, which is against FINRA regulations. Hayes reportedly did not provide these communications to the Firm.
In addition, between April 2017 and January 2018, Hayes reportedly failed to provide information and documents in response to two requests FINRA made for information into its investigation.
According to Hayes’ broker report, he was registered with NewBridge Securities Corp. in Boca Raton, FL from February 2010 until he was permitted to resign in September 2016 for, “possible selling away and private securities transactions.” Hayes has 7 customer complaints listed on his FINRA BrokerCheck report; 3 complaints are currently pending. Allegations include negligence, unsuitability and misrepresentation, among others.
The White Law Group is investigating the liability that Hayes’ former employer, Newbridge Securities, may have for his alleged 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 push.
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 Allen Hayes 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 https://www.whitesecuritieslaw.com.