The Wolper Law Firm Is Looking To Speak With Customers Of M Holdings Securities, Which Was Sanctioned By FINRA For Inadequate Supervision
The Wolper Law Firm is currently investigating claims against M. Holdings Securities for inadequate supervision of its Financial Advisors. M. Holdings was sanctioned $135,000.
M Holdings Securities has been a member firm since 1997 and employs 849 registered individuals in 178 branch offices. It is headquartered in Portland, Oregon.
According to FINRA, “On June 29, 2015, an M Holdings registered representative, MS, submitted a written request to M Holdings to participate in a private securities transaction (the “PST”). The PST involved a private offering of limited partnership interests in a commercial real estate project. M Holdings approved MS’s request on July 8, 2015. However, the firm failed to reasonably supervise the sales of interests in the private offering. In fact, from July 11, 2015 through July 22, 2015, MS solicited 20 investors (who were not customers of M Holdings) to purchase $18,755,000 in interests in the commercial real estate investment, yet M Holdings failed to supervise this activity in any way. Also, M Holdings did not record any of these 20 transactions on the firm’s books and records, as required.”
When a brokerage firm does not adequately supervise its employees that are selling private securities, this practice can lead to “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.
If you or someone you know was a customer of M. Holdings, and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyers 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. His industry insight, experience and knowledge gives his clients a competitive advantage.