Broker Terminated By His Firm for Outside Business Activities

Posted on February 11th, 2015 at 8:34 AM

 From the Desk of Jim Eccleston at Eccleston Law Offices:

According to a recent FINRA disclosure, Vadim Lubarsky resigned from his firm, Commonwealth Financial Network, for failing to disclose an outside business activity and his associated involvement with the sale of promissory notes without approval by his brokerage firm.

In the securities industry, when a stockbroker like Vadim Lubarsky sells investments such as promissory notes which are not approved by the brokerage firm it is called “selling away”. Brokerage firm may be held liable for losses in those investments to their customers even if the investment itself was not approved. Moreover, because brokerage firms like Commonwealth have a regulatory duty to supervise their brokers, regulators routinely bring enforcement actions against not only the reps but increasingly also against the supervisors. 

 The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law, Vadim Lubarsky, FINRA, Commonwealth Financial Network

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