FINRA’s Department of Enforcement investigated Meyer and alleged he participated in 37 outside business transactions without informing either Waddell or WRP at any point in time. Specifically, FINRA alleged Meyer engaged in private securities transactions by selling corporate guarantees (“United Guarantees”) issued by United Private Capital, Inc. to 20 investors totaling $1 million between November 2008 and September 2009. According to FINRA, Meyer never disclosed these outside business transactions to Waddell.
FINRA also Meyer engaged in private securities transactions between January 2010 and July 2012, while employed by WRP, by participating in sales to 13 investors of Strategic Lending Solutions LLC promissory notes (“Strategic Notes”) totaling $300,00. Further, FINRA alleged Meyer participated in private securities transactions by recommending K&M Oil Company, Inc. (“K&M”) promissory notes to eight investors totaling $238,000. According to FINRA, Meyer never disclosed to WRP that he sold either the Strategic Notes or K&M promissory notes to investors.
Based upon the foregoing misconduct, FINRA alleges Meyer violated NASD Conduct Rule 3040 and FINRA Rule 2010. 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 lost money investing with Meyer while he was employed by Waddell or WRP, 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.