Former Forest Securities Broker, Jeffrey Scott Nimmow, Barred By FINRA For Engaging In The Sale Of Woodbridge Notes Without Firm Approval
Jeffrey Scott Nimmow (CRD # 2693601) was a Financial Advisor at Forest Securities, Inc. in Hillside, IL. Jeffrey Nimmow has been in the securities industry since since 1996 and previously worked at Questar Capital Corporation, Traderight Securities, Inc., USAllianz Securities, Inc., Signator Investors, Inc. and John Hancock Mutual Life Insurance Company.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2020, FINRA barred Jeffrey Nimmow from the industry for engaging “in the sale of promissory notes to 18 individual investors totaling more than $3 million. The promissory notes were unregistered securities, and Nimmow engaged in these sales without disclosing and receiving approval from his firm for each individual private securities transaction, in violation of FINRA Rules 3280 and 2010. In addition, Nimmow was only registered to sell certain categories of securities and did not possess the proper FINRA registration to sell these promissory notes. Nimmow’s conduct violated NASD Rule 1031 and FINRA Rule 2010.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2018057522001%20Jeffrey%20Scott%20Nimmow%20CRD%202693601%20AWC%20sl.pdf
Jeffrey Nimmow was “discharged” from Forest Securities, Inc. in March 2018 in connection with this activity.
In addition, Jeffrey Nimmow has been the subject of four customer complaints, including the following:
- August 2018 – “Between February 2017 and August 2017, Representative solicited customer to loan money to Woodbridge group of companies Fund III.” Alleged damages are $150,000, and the matter is currently pending.
- February 2018 – “Claimant alleges that between late 2015 and November 20147, Representative solicited customer to loan money to Woodbridge group of companies in various funds.” Alleged damages are $450,000, and the matter is currently pending.
For a copy of Jeffrey Nimmow’s CRD, click https://brokercheck.finra.org/individual/summary/2693601#disclosuresSection
Unapproved private securities transactions are 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.
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 email@example.com.
- Former West Park Capital, Inc. and Laidlaw & Company LTD Broker, Bryan Mazliach, Investigated By FINRA For Alleged Violation Of FINRA Rules
- Former BMO Harris Financial Advisors, Inc. Broker, Lori Ann Sacco, Suspended Six Months By FINRA For Allegedly Altering Customer Account Documents
- Former Woodbury Financial Services, Inc. Broker, Jodie Lane, Suspended Six Months By FINRA For Allegedly Accepting Gifts And Becoming Beneficiary Of A Client
- Broker, Kimberley Schkade-Hill, Supsended by FINRA For Four Months And Fined $10,000 For Allegedly Having Clients Sign Documents In Blank
- LPL Financial LLC Broker, Matthew Clason, Is The Subject Of An SEC Enforcement Action For Allegedly Stealing Hundreds Of Thousands Of Dollars From A Client
- Former Capitol Securities Management Inc. Broker, Michael Rubel, Suspended By FINRA For 45 Days For Allegedly Engaging In Short-term Trading Of Unit Investment Trusts
- Recovering Your Investment Losses In Non-Traded Real Estate Investment Trusts And Business Development Companies
- Former Westpark Capital, Inc. Broker, Hary Datys, Suspended By FINRA For Fifteen Months For Allegedly Failing To Conduct Due Diligence Before Selling Promissory Notes
- Former Ameriprise Financial Services, LLC Advisor, Arthur Hoffman, Barred By FINRA For Allegedly Failing To Provide Documents In Relation To Investigation Into Outside Business Activities
- Crown Capital Securities Broker, Kenneth Barroga, Has Had Four Customer Complaint Disclosures