Former LPL Financial and Private Advisor Group Broker, Norman Batansky, Supsended by FINRA For Thirty Days And Fined $7,500 For Allegedly Participating in Private Securities Transactions
Norman Batansky (CRD # 834388) is currently registered at Peak Brokerage Services, LLC in Jupiter, FL and Blackridge Asset Management, LLC in Boca Raton, FL. Norman Batansky has been in the securities industry since 1977. Norman Batansky previously worked at Private Advisor Group, LLC and LPL Financial LLC in King of Prussia, PA. Norman Batansky was also registered with RBC Capital Markets, LLC in Conshohocken, PA.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on October 23, 2020, Norman Batansky was suspended for 30 days and fined $7,500, for allegedly engaging in unlawful private securities transactions.
According to the sanction “Without admitting or denying the findings, Batansky consented to the sanctions and to the entry of findings that he participated in a private securities transaction by facilitating a $50,000 investment by his son, in a convertible promissory note, without providing prior written notice to his member firm. The findings stated that Batansky forwarded his son, a firm customer, an email concerning an investment opportunity in a privately held medical device company. Attached to the email was an investor overview, convertible note term sheet and a subscription agreement. Using his personal email account, Batansky sent the company’s placement agent his son’s residential address and date of birth. Batansky used his personal email account to inform the placement agent that his son “will do $50,000 of the company.” Batansky asked his sales assistant to email the placement agent a scanned copy of his son’s signed subscription agreement for his $50,000 investment, a completed investor profile and questionnaire, and a W-9 tax form. Batansky thereafter arranged through his branch office’s operations department to wire $50,000 from his son’s brokerage account to his personal bank account. Batansky prepared and emailed his son a draft letter of instruction to his bank to wire $50,000 from his account to the company’s bank account. Batansky’s son completed his $50,000 investment in the company. Batansky did not receive any compensation in connection with his son’s investment. Batansky falsely attested in a compliance questionnaire that he had not participated in any private securities transactions. The findings also stated that Batansky used his personal email account to send a total of 32 securities-related emails that were not monitored or retained by the firm. Batansky attested in compliance questionnaires that he understood that he must use firm or approved email addresses for all business-related communications with all clients and prospects.”
For a copy of Norman Batansky’s FINRA disciplinary action details click here
Often times, Financial Advisors who participate in private securities transactions are said to be “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.
In addition to the FINRA sanction Norman Batansky has been the subject of four costumer complaint disclosures alleging sales practice misconduct:
• September 2010—”CUSTOMER CLAIMS HER ACCOUNTS WERE HANDLED POORLY BEGINNING 6/19/07 THROUGH 6/9/10 WHICH RESULTED IN INVESTMENT LOSSES.”
• June 2001—”CUSTOMER ALLEGED IMPROPER HANDLING OF ACCOUNT. IN MAY 2000 THE CUSTOMER INFORMED THE BROKER THAT HE WANTED STOP ORDERS ENTERED GOING FORWARD. THE BROKER BELIEVED THIS WAS FOR ALL STOCKS PURCHASED AFTER THAT DATE IN MAY. CUSTOMER SAYS STOP ORDERS WERE TO BE ENTERED FOR ALL STOCKS IN PORTFOLIO, NOT JUST THE NEW PURCHASES.”
• June 1997—”CUSTOMER CLAIMED THAT TRANSACTIONS WERE EFFECTED FOR HIS ACCOUNT WHICH WERE UNAUTHORIZED AND UNSUITABLE BASED UPON HIS INVESTMENT OBJECTIVES.”
• July 1986—”CUSTOMER COMPLAINS OF UNSUITABILITY AND SEEKS $8,000.00.”
In October of 1997 Norman Batansky resigned from Donalsdson, Lufkin & Jenrette Securities Corporation following allegations that he participated in unauthorized trading.
For a copy of Norman Batansky’s CRD, click here
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 firstname.lastname@example.org.