Gary Lee Rathburn and Douglas Scott Miller, former representatives of Triad Advisors, Inc., consented to FINRA’s sanction that they be barred from the securities industry.
According to Rathburn’s and Miller’s Letter of Acceptance, Waiver and Consent (“AWC”) with FINRA, while they were associated with Triad, Rathburn and Miller sold investments in six related limited liability companies to clients of their registered investment adviser firm, Private Wealth Consultants, Ltd. (“PWC”). They sold over $25 million of these investments to their PWC clients, many of whom were also clients of Triad.
While doing so, FINRA alleged that Rathburn and Miller failed to provide notice to Triad of their participation in the sales, and they also failed to disclose to Triad that they were being paid $500 per hour to monitor the activities of the limited liability companies. As such, FINRA alleged that Rathburn and Miller violated NASD Rules 3030 and 3040, as well as FINRA Rules 3270 and 2010. The AWC further reflects that Rathburn and Miller consented to “a bar from association with any FINRA member firm in any capacity.”
A review of Rathburn’s and Miller’s FINRA BrokerCheck report shows that in July 2014 they were “permitted to resign [from Triad] while under internal review for violation of firm policy with respect to private securities transactions.”
The FINRA disciplinary proceeding relating to Rathburn’s and Miller’s AWC is No. 2014041919401.
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