Securities fraud lawyers at Meyer Wilson are currently investigating allegations that Aaron Parthemer, formerly with Morgan Stanley and currently registered through Wells Fargo, participated in a private securities transaction regarding a startup internet branding company called GVC.
In a Letter of Acceptance, Waiver & Consent, FINRA alleged that Aaron Robert Parthemer (CRD# 2546369) of Florida participated in a private securities transaction from July 2009 through February 2012. According to FINRA, Parthemer sold his clients unapproved investments in GVC, a startup internet branding company managed by Parthemer’s friend.
It is also alleged that he facilitated the transactions by hosting a presentation for investors at his home, sent PowerPoint presentations and other information concerning GVC to potential investors, and forwarding and retrieving required documents to and from investors. FINRA stated that approximately eight of his clients invested a total of $3.08 million in GVC stock, some of whom were professional athletes who played in the NFL and NBA.
“ Selling away” means that a broker is selling or offering securities that are not offered or approved by the brokerage firm he or she is affiliated with. Industry rules prohibit brokers from selling private securities without providing notice to their firms and obtaining approval. Brokerage firms put a lot of effort into carefully researching and approving the investment products they allow their brokers to offer to their clients, and a broker who engages in selling away investments is acting inappropriately.
Although the firm may be unaware that one of its brokers is offering these outside investments, brokerage firms do have a basic duty to supervise the actions of their employees. It may be possible to also hold the brokerage firm responsible for the losses sustained by victims of stockbroker misconduct or fraud because of a failure to supervise.
Meyer Wilson is currently investigating the claims against broker Aaron Parthemer and potential supervisory failures by his managing firms, Morgan Stanley and Wells Fargo. If you invested in GVC, we invite you to contact us today for a free review of your case.