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

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