Written by The White Law Group• August 26, 2019• 3:36 pm• Current Investigations

Royal Alliance, Prescott, Arizona, Broker Investigation

FINRA Investigation, Royal Alliance Brokers reportedly charged with Selling Away

According to a FINRA Department of Enforcement complaint (Disciplinary Proceeding No. 2017053382401), registered representatives Charles Taylor, Jodi Padgett and John Farmer allegedly engaged in undisclosed outside business activities while registered with Royal Alliance in Prescott, Arizona. According to FINRA, Respondents were allegedly compensated for referring customers to a company, International Collector’s Association, purportedly marketing investments in precious metals including bullion coins allegedly without advance disclosure to their member firm. Taylor also purportedly failed to adequately supervise Padgett and Farmer to ensure that they disclosed their outside business activities.

Consequently, Taylor is reportedly suspended for six months in all capacities, six months in a principal capacity, and fined $25,000 for his alleged misconduct. Padgett is reportedly fined $15,000 and ordered to requalify as a principal. Farmer is reportedly fined $6,000. Respondents are also assessed costs.

For more information on FINRA’s findings see FINRA Case #2017053382401.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Royal Alliance may have for failure to properly supervise its employees.

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.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Arizona. Our attorneys have recovered millions of dollars from many brokerage firms in the past.