If you have ever lost money investing in 360 Properties through Bryan Anderson or Derek Weaver, you may be able to recover your losses through FINRA arbitration or securities litigation.
According to recent reports, Bryan Anderson was a registered financial broker working with MetLife Securities and Pruco terminated his employment. He allegedly would solicited investors to invest in stock options that he said employed various trading strategies. The stock options he described were not registered securities, and Bryan Anderson was not authorized to solicit investor money for the funds.
In addition, Bryan Anderson sold investments in 360 Properties - a purported real estate company. In or about 2009, Bryan Anderson allegedly represented that 360 Properties investors that their returns would come from leased property income, when there were no leased properties. In fact, some of the investors believed the 360 Properties investments was affiliated with MetLife Securities. Upon information and belief, Derek Weaver, another broker registered with MetLife and Pruco, was also a member of 360 Properties.
As a result of Bryan Anderson's scheme, between January 2009 and January 2014, approximately 18 investors invested a total of $8.4 million to Anderson. When the scheme ultimately collapsed in May 2014, about 12 investors lost approximately $3.1 million. This scheme has been labeled a Ponzi scheme, where Bryan Anderson used new investor money to pay earlier investors.
Although investors may have suffered signifciant losses in 360 Properties, they may be able to recover from the brokerage firms that he was registered with. Under FINRA rules, for a brokerage firm to properly supervise their brokers, each firm is required to establish and maintain a system where each registered representative is in compliance with the securities law.Brokers like Bryan Anderson who are engaged in selling or recommending investments that are not approved by the brokerage firm they are registered with is commonly referred to in the securities industry as “selling away”.
“Selling away” describes the situation where a financial advisor or broker recommends securities or investments that are not approved for sale by the brokerage firm and not on the brokerage firm’s approved product list. The brokerage firm’s approved product list identifies the types of securities and investments that are approved for brokers to sell after the securities have been subjected to the brokerage firm’s due diligence process which includes receiving the necessary risk and compliance department reviews and approvals. In addition, brokerage firms have a regulatory duty to supervise its brokers like Malcom Segal and the transaction itself to ensure that securities are suitable for the firm customers. Brokerage firms may be held liable for “selling away” if investors suffer losses in those outside investments.
If you have suffered investment losses investing with Bryan Anderson, or investing in 360 Properties, please contact Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your legal rights.
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentfraudattorneys.com
