We recently wrote about LPL Financial’s termination of Houston, Texas broker James "Jeb" Bashaw for "failure to follow firm policies and industry regulations." As we suspected, it now has been reported that LPL Financial terminated Bashaw for selling securities that LPL has not approved. This type of conduct often is called "selling away" and lies at the heart of many investment fraud and stockbroker misconduct claims. Selling investment products that the brokerage firm has not approved violates internal brokerage firm rules and securities industry rules.
As often is the case with brokers who work from home offices, the alleged stockbroker misconduct here involved Bashaw’s involvement in private securities transactions without providing written disclosure to and obtaining written approval from LPL Financial, Bashaw also allegedly borrowed money from a client, which also would violate firm and industry rules.
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Dimond Kaplan & Rothstein has represented many investors who have lost money in situations just like the one Bashaw is alleged to have been involved in. We have successfully pursued numerous FINRA arbitration claims on behalf of those investors against the brokerage firms that failed to adequately supervise their brokers. If you lost money in an investment that James "Jeb" Bashaw sold to you please feel free to contact us for a free consultation.