- July 3, 2018
- Palladium Capital Advisors LLC
The Wolper Law Firm, P.A. is currently investigating claims against Abraham Biderman, a former Financial Advisor at Palladium Capital Advisors, LLC in New York, NY. Abraham Biderman first entered the securities industry in 1990 and previously worked for Lipper Convertibles Series II, LLP, Lipper & Co. and Lipper Convertibles, LP.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on July 2, 2018, Abraham Biderman was censured by FINRA for failing to appear for testimony regarding his alleged participating in private securities transactions, also referred to in the industry as “selling away.”
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.
Abraham Biderman’s publicly available BrokerCheck reports further reveals two prior customer complaints. In August 2016, a customer alleged $10 million in damages arising out of the following purported misconduct:
“CLAIMANTS, LIMITED PARTNERS OF LIPPER CONVERTIBLES, L.P. (THE “FUND”), COMMENCED THIS ARBITRATION ALLEGING, AMONG OTHER THINGS, MISSTATEMENT OF THE ASSET VALUES, PERFORMANCE AND PROFITS OF THE FUND AND VIOLATION OF CERTAIN TERMS OF THE FUND’S LIMITED PARTNERSHIP AGREEMENT ADN OFFERING MEMORANDUM. CLAIMANTS ASSERT CLAIMS AGAINST MR. BIDERMAN FOR FRAUD, AIDING AND ABETTING COMMON LAW FRAUD, NEGLIGENT MISREPRESENTATION, BREACH OF FIDUCIARY DUTY, AIDING AND ABETTING BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, NEGLIGENCE, VIOLATIONS OF SECTION 10(B) AND 20(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934, AND RULE 10B-5 THEREUNDER, UNJUST ENRICHMENT AND MONEY HAD AND RECEIVED. CLAIMANTS ASSERT THESE AND AND OTHER CLAIMS AGAINST OTHER RESPONDENTS.”
In 2002, a second customer alleged, among other things, misrepresentation and violation of various state and federal securities laws. The second matter was settled for $68,000.
If you or someone you know was a customer of Abraham Biderman or Palladium Capital Advisors and you experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at firstname.lastname@example.org to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyers 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. His industry insight, experience and knowledge gives his clients a competitive advantage.