FINRA requires employees of FINRA-member firms to disclose all outside business-related activities and all investments recommended to any customers to the member firm. FINRA’s Department of Enforcement investigated Harber and found he participated private securities transactions by investing, and facilitating investments for six other investors, in a private company.
According to FINRA, Harber did not provide Cambridge Investment with written notice prior to forming Aisle411 Partners or prior to investing in Aisle4ll through Aisle411 Partners. He also did not provide Cambridge Investment with written notice prior to facilitating investments in Aisle411 for six investors, some of whom were also customers of Cambridge Investment participated in private securities transactions by making his own investment and facilitating investments for six other investors.
Based upon the foregoing misconduct, FINRA alleges Harber violated NASD Conduct Rule 3040 and FINRA Rule 2010. For example, NASD Rule 3040 states no FINRA registered person may be an employee or receive compensation for outside business transactions unless he or she has provided prior written notice to their employer. Outside business transactions and selling away are prohibited activities because they serve to undercut the supervisory system implemented by FINRA-member firms and FINRA itself to protect the investing public.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages investing with Harber while he worked for Cambridge Investment, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.