FINRA’s Department of Enforcement investigated Oates and alleged he participated in the purchase of approximately $1.4 million in alternative investment products to two individuals. FINRA alleged that one of the individual investors was also a Cetera Financial customer; however, the investments were not made in the customer’s Cetera Financial account. During the relevant time period, Cetera Financial’s policies and procedures prohibited firm employees from engaging in outside business activities without prior written notice and approval. According to FINRA, Oates never disclosed these outside investments to Cetera Financial.
Based upon the foregoing misconduct, FINRA alleges Oates violated FINRA Rule 3270, as well as FINRA Rule 2010. Specifically, FINRA Rule 3270 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 in alternative investments with Oates, then 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.