Investor Lawyers Blog
According to the Financial Industry Regulatory Authority (FINRA), broker Robert Turpin (Turpin) recently had his registration with his brokerage firm, Source Capital Group, Inc. (Source Capital), terminated for allegedly participating in “selling away” or engaging in unapproved and undisclosed outside business activity.
Turpin has been registered with the Securities Industry since 1985. He has previously been registered with First Financial Equity Corp. in Scottsdale, AZ from 1985-1991, M.F. Diessner Securities Corp. in Phoenix, AZ in 1992; Stiteler Investments, Inc. from 1993-1995, FCS Securities Corp. in Atlanta, GA from 1992-1997, Desert Star Capital Corp. in Phoenix, AZ from 1997-2001, and Uinta Investments, Inc in Gilbert, AZ from 2004-2009. Turpin was most recently registered with Source Capital in Scottsdale, AZ from 2010-2015.
Selling away can be described as when a broker solicits a client to purchase securities not held or offered by the brokerage firm the broker is registered with. As a general rule, brokers are required to only sell securities that have been reviewed and approved by the firm they are registered with. Some of the outside business activities Turpin was reportedly involved with include:
* Tartesso West Multi Family LLC
* Tartesso West Commercial Mixed Us, LLC
* Tartesso West High Density Residential II
* Tampa Bay Investors, LLC
* Tampa Bay Investors II, LLC
* Tampa Bay Investors III, LLC
* Alliance Equity Investors
* Alliance Equity Investors Colorado LLC
* New Alliance Opportunity Investors LLC
When a broker sells these unapproved securities to an investor, the broker’s firm may still be held liable for losses under agency principles. The firm also has a duty to supervise its brokers and their transactions in order to make sure the securities recommended by the broker are suitable for investors. In addition, when a broker recommends that a client purchase or sell a security, the broker must have a reasonable basis for believing that the recommendation is suitable for the investor. In making this assessment, a broker must consider the investors income and net worth, investment objectives, risk tolerance, and other security holdings.
If you believe you have been the victim of stockbroker misconduct, you may wish to consult an attorney to find out more about your legal rights and options. Investors may contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.