The Law Firm of David R. Chase, PA, headed by former SEC Prosecutor, David R. Chase, is investigating possible claims of selling away by Houston based stock broker James “Jeb” Bashaw. Bashaw was associated with LPL Financial LLC in Houston, Texas from November 2001 up through his termination in September 2014. LPL Financial allegedly terminated Bashaw for, among other reasons, engaging in securities transactions without its prior knowledge and approval, Investment News recently reported.
A securities broker may sell securities only with the knowledge and approval of his securities firm, as provided by FINRA Rule 3040. A broker’s failure to do so violates this rule and is commonly referred to as “selling away.” Selling away by a stock broker may involve the sale of several types of investments, including private placements and promissory notes. Quite often, the broker is incentivized to sell these unapproved, and in many cases, unregistered securities because of lucrative commissions, which are typically much greater than paid on approved, vetted financial products. In many selling away cases, the investment turns out to be a fraud.
Under the law, a securities brokerage firm may be held liable for the losses suffered by its customers who purchased the unauthorized and unapproved investment from its employee-broker. My law firm has successfully recouped monies for numerous, defrauded brokerage firm customers who suffered investment losses in selling away cases.
If you were a Bashaw customer who sustained losses on investments sold by him, feel free to contact my law firm for a confidential, no cost consultation on whether you have a legal right to recoup your investment losses. Call toll-free at: 800-760-0912.