Former Transamerica Financial Advisors Broker Deborah Herrmann Barred by FINRA After Failing to Particpate in Investigation Alleging Selling Away
Deborah Herrmann (CRD#: 5204514) is a previously registered Broker. She entered the securities industry in 2006 and previously worked for Transamerica Financial Advisors, Inc.; and Farmers Financial Solutions, LLC.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2021, FINRA sanctioned Deborah Herrmann, barring her from all capacities indefinitely, beginning September 30, 2021. The FINRA sanction states, “Without admitting or denying the findings, Herrmann consented to the sanction and to the entry of findings that she failed to provide documents requested by FINRA during an investigation initiated after receiving a tip. The findings stated that Herrmann made a partial production but has not provided a complete response to FINRA’s requests.”
For a copy of the FINRA sanction, click here.
In addition, Deborah Herrmann has been the subject of one customer complaint, including one that remains pending, including the following:
● April 2021–”FINRA issued both the firm and the representative 8210 letters in connection with an investigation conducted by FINRA. Upon review by the firm, it was discovered that the Representative did not disclose a civil litigation matter. Additionally, the firm identified that the Representative participated in the solicitation of an investment opportunity away from the firm. The Representative also acknowledged making a personal investment with this outside entity. The Representative did not seek or receive firm approval to engage in any of these activities.” Deborah Herrmann was discharged from Transamerica Financial Advisors, Inc.
● Mary 2019–”Registered Representative was allegedly involved in the selling of notes as investment opportunities to the claimants. The claimants further allege that the Representative misrepresented the intent of their investment funds.” Damages of $130,000 are requested, and the customer dispute is pending.
For a copy of Deborah Herrmann’s FINRA BrokerCheck, click here.
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.
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.