Florida Broker Barred After He Failed to Cooperate With an Investigation Into Private Securities Transactions
Bobby Wayne Coburn (CRD#: 1464789) is a previously licensed securities broker. From February of 2009 to April of 2019, this financial professional was a representative of Securities America, Inc.—working at a branch office in Fort Meade, Florida.
Earlier this year, Mr. Coburn was discharged by Securities America for allegedly soliciting investment from several of the firm’s customers. Based on information obtained through BrokerCheck, Securities America believed that Mr. Coburn tried to get the firm customers to invest in unapproved, undisclosed private securities transactions.
Soon after he was discharged by his member firm, FINRA launched its own review into this financial advisor’s conduct and the allegations that he engaged in improper selling away of securities while he was employed as a licensed broker.
Former Securities America Broker Bobby Coburn Refused to Cooperate With Investigation
After Bobby Wayne Coburn was terminated by Securities America, the Financial Industry Regulatory Authority (FINRA) initiated its own investigation in accordance with securities industry regulations. Specifically, the investigation was focused on the allegations that he improperly sold securities outside of the purview of its member firm. However, the investigators were thwarted in their inquiry: In violation of FINRA Rule 8210, Mr. Coburn refused to provide financial documents and on-the-record testimony despite acknowledging that he received the requests from the agency. Without admitting or denying any wrongdoing, the former Florida broker consented to FINRA’s proposed penalties—which included an immediate and indefinite bar from the securities industry.
Registered Representatives Must Get Approval for Private Securities Transactions
Brokerage firms have a responsibility to look out for the interests of their customers. Among other things, firms are required to supervise their representatives and to oversee all securities transactions. Selling away occurs when a financial advisor or broker offers securities or other financial products to customers outside the scope of their member firm. Under FINRA regulations, there are very strict rules regarding these types of securities transactions. Specifically, financial advisors must:
- Disclose the proposed private transaction to their member firm ahead of time; and
- Get approval for the private securities transaction.
If brokers fail to disclose and get approval for these transactions, they are in breach of their duties under industry rules. Unfortunately, in many cases, private securities trades are far more risky than are other transactions—as a result, they can expose investors to the potential for sharp losses. If you sustained financial damage as a result of an advisor selling away from their member firm, you need professional representation. You may be entitled to compensation for your investment losses.
Get Help From Our Miami, FL Selling Away Attorneys Today
At Carlson & Associates, P.A., our Miami selling away investments lawyers have the skills and expertise needed to handle the complete range of selling away claims. If you suffered losses in a private securities transaction, you need a strong, successful attorney on your side. For a confidential, no commitment consultation, call us at our Miami law office right away.
Resource:
brokercheck.finra.org/individual/summary/1464789
