New York, New York – Zamansky LLC is investigating former LPL branch manager and financial advisor James “Jeb” Bashaw over possible “selling away” violations. On October 14, 2014, the Investment News reported that Mr. Bashaw was terminated by LPL last month for several allegations, including participating in private securities transactions without providing written disclosure to and obtaining written approval from LPL. Mr. Bashaw allegedly also borrowed from a client and engaged in a business transaction that created a potential conflict of interest without providing written disclosure to and obtaining written approval from the firm.
Mr. Bashaw’s profile on Broker/Check, the industry database maintained by the Financial Industry Regulatory Authority Inc. (“FINRA”), states that Mr. Bashaw was terminated by LPL for allegedly “failing to follow firm policies and industry regulations.” It makes no mention of his allegedly borrowing from a client or “selling away,” which the Investment News reported appear on his profile in the Central Records Depository, a more detailed industry database not available to the public.
The Investment News reports that Jeb Bashaw was, in 2011 according to Barron’s, the largest financial advisor in Texas, with reportedly $3.8 billion under management. The Investment News reports that Jeb Barshaw had as many as a dozen other financial advisors working under him, and they together have transferred from LPL over to Wunderlich Securities Inc.
According to securities arbitration attorney Jake Zamansky, engaging in securities transactions without broker-dealer approval is commonly known as “selling away” in the securities industry. FINRA Rules prevent this type of outside activity, Zamansky states, because it is ripe for abuse. If acting outside of regulator supervision, a financial advisor will often sell the investment paying the largest commission, not the one best for the customer. The investment paying the largest commission is often the most speculative, risky, illiquid or even fraudulent, Zamansky says. Any investor who was sold a questionable investment should have it reviewed for suitability by a professional, he advises.
What Investors Can Do
If you are or were a customer of LPL financial advisor Jeb Bashaw, and wish your account reviewed for possible violations, please contact our firm for an evaluation. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at email@example.com.
About Zamansky LLC
Zamansky LLC is a leading law firm specializing in securities and investor arbitration and class actions. We are investment fraud attorneys who represent both individual and institutional investors in FINRA arbitrations and class action lawsuits. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
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Jake Zamansky, 212-742-1414