Brian Lewis Pittman, a former broker employed by Naples, Florida-based Westport Resources Investment Services, Inc. (Westport Resources), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanctions and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he participated in private securities transactions without giving the required written notice and without the approval of Westport Resources.
FINRA found that Brian Pittman referred two Westport Resources account holders to invest in an oil and gas limited partnership interest in the Permian Advanced Oil Recovery Investment Fund I, LP, offered by Quest Energy Management Group, Inc. The two Westport customers, according to FINRA, invested $375,000 in the Permian offering and Mr. Pittman received approximately $45,000 from Quest in compensation, which he ultimately ended up returning when he was told to do so.
For his part in the unapproved securities transactions (referred to as selling away), Brian Pittman, of Naples, Florida, was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for four months. The suspension is in effect from December 15, 2014 through April 14, 2015.
Selling away is the inappropriate practice of an investment professional who sells or solicits the sale of securities or investments which are 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 registered representatives and supervise its sales.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers fail to establish and implement these protective measures, they may be liable to investors for investors’ losses. Therefore, investors who have suffered losses due to unauthorized investments which were solicited and sold by their broker can bring forth claims to recover damages against brokerage firms like Westport Resources Investment Services, which should consistently oversee its brokers’ activities in order to prevent the above-described prohibited conduct.
Have you suffered losses in your Westport Resources investment account due to an unauthorized investment recommended 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 stockbrokers and registered representatives who may have engaged in misconduct and caused investment 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 33 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.