Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » FINRA Sanctions First Allied Stockbroker For Selling Away

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Brian F. Donnelly of Iselin, New Jersey, a stockbroker formerly registered with First Allied Securities Inc., has been suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Donnelly engaged in private securities transactions when he was associated with First Allied Securities. Letter of Acceptance Waiver and Consent No. 2021071491001 (June 21, 2022).

According to the AWC, between February 2020 and March 2021, Donnelly took part in a private securities transaction along with a customer of First Allied Securities. The AWC states that the customer was introduced by Donnelly to a company that aimed to invest in limited partnerships. The AWC states that the customer was provided with a private placement memorandum as well as a company presentation from Donnelly. The customer made a $250,000.000 investment in that company in part because of the help they received from Donnelly.

FINRA states that Donnelly continued to be involved after the customer’s purchase. He received an account statement from that company and provided it to the customer. The AWC states that Donnelly also provided the customer with a revised private placement memorandum.

Donnelly’s initial and ongoing involvement with the customer regarding their limited partnership unit holdings was not part of Donnelly’s employment activities while registered with First Allied Securities. Donnelly did not have permission from First Allied Securities to effect securities transactions outside its auspices. He violated Rules 2010 and 3280 for this reason.

The AWC states that Donnelly’s communications with the customer occurred outside the allowed methods of communications at First Allied Securities. The securities broker dealer did not receive any of Donnelly’s messages or emails to the customer. Donnelly violated Rules 2010 and 4511 by causing First Allied Securities not to maintain the communications relating to his securities business.

FINRA Public Disclosure shows that Donnelly is referenced in a customer initiated investment related FINRA securities arbitration claim which was settled for $55,000.00 in damages based upon accusations that the customer had been sold an unsuitable investment in GPB because of Donnelly while he was registered with Triad Advisors. FINRA Arbitration No. 19-02968 (August 8, 2020). The claim alleges that the customer sustained damages following GPB’s suspension of distributions.

Donnelly was also an investment adviser representative of Gitterman Wealth Management LLC. The investment advisory permitted Donnelly to resign founded on allegations that he executed inappropriate transactions involving non-traded REITs.

Donnelly was employed by First Allied Securities between December 17, 2015, and May 21, 2021.