Daniel Gregory Retzke, a registered representative with Edward D. Jones & Co., L.P., was permanently bared from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after failing to provide information and documentation requested by FINRA in connection with an investigation into Retzke’s alleged private securities offerings. Letter of Acceptance, Waiver, and Consent, No. 20140434401 (Mar. 5, 2015).
According to the AWC, FINRA began to investigate Retzke upon learning of allegations that Retzke had solicited a loan from his firm’s customer and engaged in selling private securities offerings outside the scope of his firm without his firm knowing or approving the transaction(s). FINRA, on January 30, 2015, requested that Retzke provide information and documentation in connection with their investigation into his alleged misconduct, pursuant to Rule 8210.
The AWC noted that Retzke had spoken with FINRA’s staff on February 3, 2015, where he acknowledged that he received the regulator’s request to provide information, but that he would not be cooperating with such investigation at any point. As such, FINRA found Retzke to have violated FINRA Rule 8210 and 2010, leading to his permanent bar.
Selling away, also known as private securities transactions or undisclosed outside business activities, occurs when a stockbroker engages or participates in the sale of securities to investors outside of the formal approval of the securities firm with whom they are associated.
As a general matter, stockbrokers are only permitted to engage in the solicitation or sale of investments and investment related products approved by their firm. However, quite frequently, stockbrokers solicit, participate, or directly engage in the sale of typically unregistered securities or investments without the approval and outside of the auspices of their firm. These investments may take on many forms, and may include the recommendation of an outside money manager, or a hedge fund, which may sometimes turn out to be a Ponzi scheme. Sometimes these outside investments may include off-shore securities, insurance trusts, stocks or ownership interests in small businesses, startup ventures, corporate debentures, mortgage notes, private placements, promissory notes, oil & gas interests, real estate partnerships, pre-IPO shares, and a variety of other investments.
FINRA registered representatives like Retzke who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Public disclosure records reveal that Retzke has been subject to four disclosure incidents. On February 1, 2013, a customer was awarded $19,000.00 in damages after alleging Retzke made unsuitable recommendations in a single stock position which resulted in losses to the customer.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
