Steven Robert Aron, a former broker at Westlake Village, California based Financial West Group, submitted a Letter of Acceptance, Waiver and Consent in which he consented to the described sanction and to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that through his outside business activity, he facilitated investments on behalf of some of his firm's customers and another customer of his certified public accounting business. FINRA stated that Mr. Aron combined $325,000 of the customers' money to invest in a local pawn and jewelry business on their behalf, and the customers invested with the expectation of a 9 percent return on their investment. FINRA's findings also stated that Mr. Aron failed to notify his firm of his participation in his outside business activities and in the customers' investments. FINRA further included that during the course of FINRA's investigation into Mr. Aron's outside business activities and private securities transactions, it requested information and documentation from Mr. Aron, and Mr. Aron complied with one request but refused to comply with a second request and informed FINRA that he would not respond to any future requests. Mr. Aron, of Agoura Hills, California, was barred from association with any FINRA member in any capacity.
"Selling away" is the inappropriate practice of an investment professional who sells or solicits securities or investments not held, approved, or authorized by the brokerage firm with which the professional is associated. Under NASD and FINRA rules, brokerage firms must approve investments offered by their investment professionals and supervise its sales.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to unauthorized, outside business activities can bring forth claims to recover losses against broker-dealers like Financial West Group.
Have you suffered losses in your Financial West Group account due to unauthorized, outside business activities by your broker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Financial West Group stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.