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

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

July 1, 2025
State Regulators Fine Five Major Broker-Dealers Nearly $10 Million for Excessive Commission Charges

A coalition of state securities regulators has ordered five broker-dealers — including Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade — to pay almost $9.9 million in penalties for overcharging customers on small-value trades.

June 30, 2025
SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

The Securities and Exchange Commission (“SEC”) has charged David A. Nagler and his firm, New Line Capital LLC, with defrauding clients through deceptive fee disclosures and undisclosed conflicts of interest.

 

June 27, 2025
FINRA Sanctions Advisor for Accepting $1 Million Inheritance from Client Without Firm Approval

FINRA has fined and suspended veteran advisor Kenneth J. Malm for accepting a $1 million inheritance from a client without receiving the necessary firm approval.