A brokerage firm has a duty to supervise the activities of its registered representatives to prevent unsupervised or outside sales transactions called ‘selling away,’ according to Jake Zamansky.
New York, NY (PRWEB) March 08, 2013
Zamansky & Associates LLC (“Zamansky”) announces that it is investigating financial advisor Jeffrey Brett Rubin (“Rubin”), his firm ProSports Financial, and investments he sold in AKA LLC, AKM LLP, KTCP LP and MPG LLC. The investigation concerns Rubin’s sales of these private investments without approval from the brokerage firms where he was registered.
On March 7, 2013, the Financial Industry Regulatory Authority, FINRA, which regulates brokerage firms, announced that it had reached a proposed settlement with Rubin. The case is FINRA Letter of Acceptance, Waiver and Consent No. 20110265559021 (“AWC”). In the AWC executed by him, Rubin acknowledges not to dispute that from March 2006 through March 2011, he sold approximately $40 million of private investments in AKA LLC, AKM LLP, KTCP LP and MPG LLC to 31 of his clients, without prior written notice to his brokerage firms. He agreed to be barred from association with any FINRA member firm in any capacity.
The investigation concerns whether his brokerage firms, International Assets Advisory LLC and Alterna Capital Corporation, had knowledge of these transactions or his activities. “A brokerage firm has a duty to supervise the activities of its registered representatives to prevent unsupervised or outside sales transactions called ‘selling away,’” according to Jake Zamansky. In addition to “knowing their customer”, FINRA Rules require brokerage firms to know what their employees are up to, says Zamansky. He believes that the brokerage firms may potentially have exposure if they knew about Rubin’s transactions or failed to properly supervise him.
What Investors Can Do
If you were sold an investment by Jeffrey Brett Rubin of ProSports Financial, and would like to discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Contacts
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414
jake(at)zamansky(dot)com
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