• December 16, 2018
• American Independent Investment Group
• Selling Away

The Wolper Law Firm, P.A. is currently investigating claims against Nicholas Radke (CRD  2610246),a former Financial Adviser at American Independent Investment Group in Lake Oswego, Oregon.  Nicholas Radke has been in the securities industry since the 1990s and previously worked at LPL Financial Group. 

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on December 6, 2018, 2018, Nicholas Radke was sanctioned by FINRA for failing to respond to a FINRA subpoena, requesting documents as part of an investigation into whether Nicholas Radke unlawfully engaged in selling away.  Nicholas Radke was barred from associating with a FINRA member in any capacity.  The FINRA sanction specifically states:

“Without admitting or denying the findings, Radke consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information in connection with FINRA’s investigation into allegations that Radke, among other things, participated in a private securities transaction without prior approval from his member firm.”

For a full copy of the sanction, click https://www.finra.org/sites/default/files/fda_documents/2018059899901%20Nicholas%20Randolph%20Radke%2C%20Jr.%20CRD%202610246%20AWC%20va.pdf.

The alleged misconduct is referred to in the industry as “selling away.”  The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.  

The Wolper Law Firm, P.A. is interested in speaking with clients of Nicholas Radke as part of its investigation.  We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.  The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities.  Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.