Las Vegas broker Neil Fineman barred by FINRA for selling shares of GreenOne Holdings away from his Broker-Dealers.

By November 14, 2018Stock Broker

In late 2017, Neil Fineman consented to a FINRA (Financial Industry Regulatory Authority) sanction that he be barred “in all capacities” from associating with any FINRA member, meaning that he has been indefinitely barred from practicing as a securities broker.  According to FINRA’s BrokerCheck, prior to agreeing to this sanction, Neil Fineman had been the subject of three customer disputes. The attorneys of Fishman Haygood Investment Fraud Lawyers are currently investigating possible claims against stockbroker Neil Fineman and/or the broker-dealer firms responsible for supervising his actions.  Contact us today to discuss your options and receive a free consultation.

Prior to the 2017 FINRA sanction, Neil Fineman had been practicing as a broker in Las Vegas, Nevada and had been associated with multiple FINRA-registered broker-dealer firms.  For example:

  • Neil Fineman worked for First Allied Securities, Inc. from February 2014 to January 2016.
  • Neil Fineman worked for SagePoint Financial, Inc. from September 2013 to February 2014.
  • Neil Fineman worked for Regal Securities, Inc. from July 2007 to October 2013.

FINRA alleged that from January 2011 to January 2016 (while subject to the supervision of the above-mentioned FINRA member firms), Neil Fineman engaged in private securities transactions by selling away at least $2.5 million worth of shares in GreenOne Holdings, Inc. and its subsidiaries and predecessor companies, including Global Water Solutions and Clearly Zero.  “Selling away” generally describes a situation in which a broker sells an investment or security that has not been approved for sale by the firm for which he or she works and that is not on the firm’s approved product list.  As a result, the investment or security has typically not been subjected to the firm’s due diligence process or received any risk or compliance reviews; and the firm has not determined that the sale of the security is “suitable” for a given customer.  

FINRA alleged that Neil Fineman sold the GreenOne Holdings’ (and predecessors’) securities to 60 investors, at least 16 of whom were customers of the firms, without providing written notice to each of the firms, in violation of NASD Rule 3040 and FINRA Rules 3280 and 2010.  FINRA further alleged that during the course of its investigation of Neil Fineman’s alleged misconduct, Neil Fineman’s responses to FINRA’s requests for documents and information included misleading and inaccurate information regarding his role in the company, as well as his participation in the private securities transactions.  This conduct, FINRA alleged, also violated FINRA Rules 8210 and 2010.

Neil Fineman had previously consented to FINRA sanction in 2015.  At that time, Neil Fineman consented to a 20-day suspension and to pay a $5,000 fine for engaging in two outside business activities, without providing written notice to the firms for which he worked, in connection with Clearly Zero and Global Water.

FINRA member firms (including First Allied Securities, SagePoint Financial, and Regal Securities) have an obligation to supervise their registered representatives (including Neil Fineman) and to enforce supervisory procedures that are reasonably designed to prevent and detect misconduct, including representatives engaging in unauthorized private securities transactions (aka, “selling away”).  To the extent that FINRA member firms fail to adequately supervise their registered representatives, they can be held responsible for the resulting harm to the customers.

If you invested money through Neil Fineman, we would like to talk to you. Fishman Investment Fraud Lawyers are experienced securities litigators. We have helped hundreds of clients recover their losses that were due to broker fraud, negligence, or other misconduct. Contact us today to discuss your options and receive a free consultation.

Fishman Investment Fraud Lawyers represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.

Of course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood Investment Fraud lawyer today.