- September 3, 2019
- John W. Loofbourrow
Craig A. Zabala (CRD # 2740680) is a former Financial Advisor at John W. Loofbourrow Associates, Inc. in New York. Craig Zabala has been in the securities industry since 1997 and previously worked at Torsiello Securities, Inc., Intercoastal Financial Services Corp., Independent Securities Investors Corporation, Brean Murray & Co., Allmerica Investments, Inc., Trautman Wasserman & Company and Merrill Lynch.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2019, FINRA barred Craig Zabal from acting as a broker or otherwise associating with a broker-dealer firm indefinitely for failing “to provide documents and information requested by FINRA in connection with its review of his outside business activities and his potential participation in private securities transactions.”
For a copy of Craig Zabala’s CRD, click https://brokercheck.finra.org/individual/summary/5177794#disclosuresSection.
For a copy of the FINRA sanction, click https://brokercheck.finra.org/individual/summary/2740680#disclosuresSection.
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. 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. We can be reached at 800.931.8452 or by email at email@example.com.