Earlier this year, the Financial Industry Regulatory Authority (FINRA) announced that it barred former Taylor Capital Management broker, Dennis Farrah. FINRA barred Farrah after he refused to provide information requested by FINRA in connection with its investigation of his possible participation in unreported outside business activities and private securities transactions—a practice in the securities industry known as “selling away”.
Selling away, or selling securities and investments to clients that are not offered by the broker’s brokerage firm, is strictly prohibited by FINRA. This prohibition ensures that a broker or financial advisor only offers to sell securities that have properly been vetted and approved by the respective financial firm. In December 2017, Farrah resigned from Taylor after being advised that the Colorado Division of Securities was prepared to file charges against him for “selling away, short-term real estate notes, without advising [Taylor] of his intention to do so.”
Subsequent to Farrah consenting to the bar by FINRA, four separate customers have filed complaints, alleging breach of fiduciary duty, violations of the Colorado securities laws, negligence, and securities fraud related to Farrah’s conduct at Taylor. The total alleged damages exceed $700,000.
If you or someone you know invested money through Dennis Farrah or Taylor Capital Management, our firm’s team of experienced securities litigators can help. Our firm has helped hundreds of clients and retirees recover their losses due to broker fraud or negligence. Contact us today.