Former Morgan Stanely Broker Darrell Rideaux was recently barred by FINRA because he refused to cooperate with its investigation regarding allegations that he solicited private placement investments without the approval of his firm, resulting in losses to investors.
According to his BrokerCheck report, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement launched an investigation into Rideaux’s alleged actions in late 2017. In January 2018, the agency sent him a request to appear for on-the-record testimony concerning the investigation and the two claims against him. He refused to appear for the testimony, violating FINRA Rules 8210 and 2010. As a result, Rideaux was barred from acting as a broker or working with any broker-dealer.
Rideaux is also the subject of two pending customer disputes revolving around the same allegations of misconduct – that Rideaux solicited customers to make investments in securities that were not sold by, or approved by, Morgan Stanley.
Rideaux has worked for a number of brokerage firms throughout his career in the securities industry, including Morgan Stanley, Signator Investors, Inc., and NMS Capital Advisors, LLC. His registration with Morgan Stanley ended in May 2017.
Selling Away Is a Violation of Securities Laws and May Be Fraudulent
When a broker solicits customers to purchase investments or securities that are not held, approved, or offered by the brokerage firm, it is commonly referred to as “selling away.” Sometimes motivated by high commissions that do not have to be split with the brokerage firm, unscrupulous brokers push unapproved products on unsuspecting investors. Sometimes, the investment is not legitimate at all, but instead it’s an investment scam. Unfortunately, many investors are not aware that their investments may be fraudulent until the money is long gone. Since brokerage firms are responsible for supervising the action of their brokers, a firm may be held liable for the damages caused by selling away.
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If you are concerned that your broker have sold you an unapproved investment that caused you to lose money, our investment fraud attorneys would like to offer you a free case evaluation. Give Meyer Wilson a call today at (614) 532-4576 to discuss your legal options.
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Recovering Losses Caused by Investment Misconduct.
