California Advisor Terminated From Two Firms Over Undisclosed Outside Business

Posted on September 2nd, 2022 at 1:19 PM
California Advisor Terminated From Two Firms Over Undisclosed Outside Business

From the Desk of Jim Eccleston at Eccleston Law.

A California-based financial advisor had his record tarnished on two occasions in a six-month period over related undisclosed outside business activity (OBA) allegations.

The advisor, Sevag Haddadian, “voluntarily” departed Morgan Stanley in January. However, Morgan Stanley noted that he left after allegations of his undisclosed involvement in real estate limited liability companies that “purchased, rented and sold homes in Ohio with Firm clients.” After joining Wells Fargo, Haddadian was terminated six months later over similar problems, according to a recent regulatory filing.

“An internal review determined that the registered representative failed to timely disclose his involvement with a LLC that acquired and rented real estate,” Wells Fargo noted on Haddadian’s BrokerCheck. FINRA Rule 3270 requires “prior written notice” by representatives to their member firms of any outside activities from which advisors have a “reasonable expectation” of compensation.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, oba

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.