FINRA Reportedly Suspends Fred Rock after Allegations of Selling Away
According to public records provided by the Financial Industry Regulatory Authority (FINRA), the regulator has suspended broker Frederick Rock (CRD#: 2548242) of Tampa, Florida for five months after allegations of “selling away.” He was also fined $5,000, according to FINRA.
Over a four-month period in 2019, Rock allegedly participated in private securities transactions away from his member firm. Rock reportedly did not provide advance written notice to Pruco for these transactions as required.
Between March and June 2019, Rock purportedly solicited private-placement investments in a startup company developing waste-to-energy technology totaling $409,200 from 17 investors, including four Pruco customers. Rock allegedly participated in these purchases by recommending the investments, helping the investors complete Stock Purchase Agreements, and collecting their agreements and funds to provide to the company, according to FINRA’s findings.
According to his FINRA BrokerCheck report, Rock was registered with Pruco Securities in Tampa, FL from July 2014 until September 2019. Prior to that he worked at Fifth Third Securities for seven years. He is not currently registered as a broker, according to FINRA.
Rock’s broker profile indicates that he has three judgments/liens and two customer complaints during his career in the securities industry.
For FINRA’s full findings see, FINRA Case #2019063574801.
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.
When brokers abuse client accounts or conduct transactions that violate securities laws, such as selling away or making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
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If you are concerned about investments with Frederick Rock (Fred Rock) or Pruco Securities, the securities attorneys at The White Law Group may be able to help you. For a free consultation, please call (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. For more information, please visit our website, www.whitesecuritieslaw.com.