FINRA Sanctioned Broker, Robert P. Allen, For Allegedly Engaging In Unapproved Outside Business Activities

• December 22, 2019
• Country Capital Management Company

Robert P. Allen (CRD # 6267678) was a former Financial Advisor at Country Capital Management Company in Augusta, GA. Robet Allen has been in the securities industry since 2013.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on December 13, 2019, FINRA sanctioned Robert Allen for allegedly engaging “in an an outside business activity by marketing and selling insurance products offered by a non-affiliated insurance company without disclosing the outside business activity to his member firm. The findings stated that Allen’s contact with the insurance affiliates prohibited him from selling insurance products through other, non-affiliated insurance companies. Despite this prohibition, Allen earned approximately $143,000 in commissions. Moreover, Allen submitted multiple attestations to his firm that falsely stated he was not engaged in any other business either as a proprietor, partner, officer, director, employee, trustee, agent or otherwise.

Robert Allen was fined $5,000 and suspended for three months. For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2019061185701%20Robert%20P.%20Allen%20CRD%206267678%20AWC.pdf.

Country Capital Management Company “discharged” Robert Allen in December 2018 relating to these allegations.

In addition, Robert Allen was the subject of a June 1994 customer complaint alleging “CLIENT FILED A SUIT AFTER PARTNER AND REP EXCHANGED A MUTUAL FUND FOR AN ANNUITY. CLIENT CLAIMED THAT THEY COULD NOT READ THE DOCUMENT AND THAT THE PARTIES TOOK ADVANTAGE OF THE CLIENT.” The matter settled for an undisclosed amount.

For a copy of Robert Allen’s CRD, click https://brokercheck.finra.org/individual/summary/6267678#disclosuresSection.

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.

Moreover, 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 represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, 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. We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.