Derek Weaver was recently barred by the Financial Industry Regulatory Authority (FINRA) after he failed to provide documents and information requested by FINRA to investigate his dealings. FINRA first requested documents from Weaver in December 2014.
FINRA authority was looking into allegations that Weaver may have participated in a Ponzi scheme, the nature of which and Weaver’s role in such are not yet known. A Ponzi scheme is a fraudulent investment operation where a broker pays returns to its investors from new capital paid to the broker by new investors, rather than from profit earned by the broker.
FINRA alleges that Weaver’s actions constituted the illegal practice of “selling away.” Selling away is when a broker sells or solicits the sale of securities not held or offered by the brokerage firm with which he is associated.
FINRA rules require a brokerage firm to monitor and supervise employees so as to ensure they do not offer these types of securities. Investors in these cases are typically unaware that the securities are being “sold away,” which can result in massive losses. This practice most often occurs in firms and environments where proper supervisory systems are not in place.
BrokerCheck records indicate that Weaver was registered with MetLife Securities, Inc. from May 2008 through January 2012, and with Pruco Securities, LLC from February 2012 through April 2013. Those records also indicate that Weaver has disclosed three customer disputes, one regulatory event, a criminal proceeding and a financial event, including sale of unregistered securities and the discussion of investments that were part of a Ponzi scheme.
If you received an unsuitable recommendation from Derek Weaver and suffered significant losses are a result, you may be able to recover your losses in FINRA arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or firstname.lastname@example.org for a no-cost, confidential consultation.