FINRA requires employees of FINRA-member firms to disclose all outside business-related activities and all investments recommended to customers to the member firm. FINRA’s Department of Enforcement investigated Heimowitz and found he participated in several private securities transactions. Specifically, FINRA alleged Heimowitz recommended a gold mining company to a client where Heimowitz’s son was the CEO. Heimowitz also recommended that some of his customers invest in a company who specialized in renewable energy - a company where Heimowitz was a consultant.
Further, FINRA alleged Heimowitz participated in an outside business activity when he purchased gold and silver coins from the US Treasury and sole those coins to his customers. According to FINRA, Heimowitz failed to inform Newport Coast about any of the aforementioned business activities in violation of FINRA rules and regulations.
Based upon the foregoing misconduct, FINRA alleges Heimowitz violated NASD Conduct Rules 3030, 3040 and 3270, as well as FINRA Rules 2010 and 3270. 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 Heimowitz while he worked for Newport Coast, Global Arena Capital and/or Lantern Investments, 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.