David Gott, a representative formerly employed with Ausdal Financial Partners, Inc. (Ausdal 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 engaged in outside business activities without his firm’s approval.
FINRA’s findings state that while employed by Ausdal Financial, David Glenn Gott, of Tipton, Iowa, sold at least $546,000 in private equity and debt investments to four individuals. Ausdal’s policies and procedures regarding private securities transactions prohibited registered representatives from engaging in such transactions. FINRA found that Mr. Gott neglected to provide the necessary written notice to his member firm prior to the private sales. According to FINRA, although Mr. Gott did not personally receive compensation for the sales, his company benefited from them. Mr. Gott was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for six months. The suspension was in effect from July 17, 2017 through January 16, 2018.
Stockbrokers, registered representatives, and other financial professionals have been known to engage in many types of fraudulent and prohibited behavior which are in violation of industry rules and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a supervisory system in order to safeguard customer assets. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to account holders for investment losses. As a result, account holders who have suffered losses stemming from a registered representative’s misconduct can file a claim to recover damages against broker-dealers, like Ausdal Financial, which have a duty to supervise its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Ausdal Financial 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 Ausdal Financial 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 35 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.