- August 8, 2023
- Gradient Securities LLC
Douglas Bauerband (CRD#: 2850269) is a previously registered Broker at Gradient Securities, LLC in Toms River, NJ.
Douglas Bauerband entered the securities industry in 1997 and previously worked for Gradient Securities, LLC; TFS Securities, Inc.; Sagepoint Financial, Inc.; American General Securities Incorporated; and Uslife Equity Sales Corporation.
Current and Past Allegations of Conduct Leading to Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2023, Douglas Bauerband was discharged from Gradient Securities, LLC for, “violation of firms policies and procedures: undisclosed OBA (outside business activities).”
In addition, Douglas Bauerband has been the subject of one other customer complaint:
- July 2023— “ The customer alleges the early withdrawal penalty associated with this annuity contract was never discussed or disclosed.” The customer dispute was settled for $16,000.
For a copy of Douglas Bauerband’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losse
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.
Pursuant to FINRA Rule 3270, outside business activities in which Financial Advisors become involved must be disclosed. This is in order to ensure that Financial Advisors do not engage in 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.
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