If you have lost money investing Malcolm Segal or in National CD Sales, you may be able to recover your losses through FINRA arbitration or securities litigation.
According to FINRA, Malcolm Segal (CRD No. 1723563) was recently barred from for failing to cooperate with FINRA enforcement regarding a pending investigation into allegations that Malcolm Segal had transferred investor funds to an outside business activity under his control.
According to Malcolm Segal’s regulatory history, in July 2014, Former his former brokerage firm Aegis Capital Corp broker Malcom Segal was recently barred by the Financial Industry Regulatory Authority (FINRA) as he allegedly engaged in unauthorized transfers of funds.terminated Malcom Segal for similar allegations.
Upon information and belief,Malcolm Segal and/or Aegis Capital are currently subject to five arbitrations regarding Segal’s alleged unauthorized transfer of investor money. Upon information and belief, some of the these investors are making claims regarding Malcolm Segal’s activities related to customers in connection with J & M Financial and/or National C.D. Sales, and also have made allegations that they have suffered investment losses in certain CDs. where Segal is a partner, have filed complaints against Segal for “selling away” securities violation.
Under FINRA rules, for a brokerage company 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. In selling away cases, investors are unaware that the advisor’s investment advice is not authorized and often securities are not registered with the SEC. Most times investors will not learn of the broker’s wrongdoing activities until after the scheme is publicized.Stockbrokers like Malcolm Segal who may be 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 Malcolm Segal, J&M Financial and/or National CD Sales, or to simply learn more about the FINRA arbitration process, 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.
