Mark Brian Quimby, a former registered representative with Allstate Financial Services, LLC (Allstate Financial), submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he solicited two customers to invest in private securities transactions without the necessary firm approval.
FINRA found that Mark Quimby, of Palm Harbor, Florida, recommended that two firm customers invest in TES, a security formed to invest in alternative investments and managed by Mr. Quimby’s wife. The two customers invested $20,000 and $39,725 in TES for which they received an equity interest and pro rata shares of any profits.
NASD Rule 3040 prohibits registered representatives from participating in private securities transactions outside of their normal course of employment without providing prior written notice and receiving written approval from their firm. According to FINRA, Mr. Quimby failed to provide prior written notice to Allstate Financial and did not receive the necessary written approval from the firm to participate in any way with investments in TES.
Mark Quimby was assessed a deferred fine of $10,000 and was suspended from association with any FINRA member in any capacity for three months. The suspension is in effect from September 8, 2015 through December 7, 2015.
Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of misconduct which are in violation of industry rules and procedures. In order to protect customers from this misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of the rules requires that supervisors monitor firm employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to account holders for losses flowing from their employees’ misconduct. As a result, account holders who have suffered losses stemming from unauthorized transactions by their broker or registered representative can bring forth claims to recover damages against broker-dealers like Allstate Financial, which have a duty to supervise its employees in order to prevent broker misconduct.
Have you suffered losses in your Allstate Financial investment account due to your stockbroker’s misconduct? 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 Allstate Financial stockbrokers for unauthorized and prohibited misconduct.
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 40 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.