Securities Arbitration Lawyers BlogNicholas Palumbo Terminated For Selling Away
Nicholas Palumbo (Nicholas R Palumbo CRD:# 1069948, aka “Nicholas Richard Palumbo” And “Nick Palumbo”) is a previously registered broker and investment advisor whose last known employer was Park Avenue Securities LLC (CRD#:46173) of Armonk, NY. His previous employers include Guardian Investor Services Corporation (CRD#:6635 of New York, New York, SMA Equities, Inc. (CRD#:3960), and First Investors Corporation (CRD#:305) He has been in the business since 1983.
Palumbo has only one disclosure, his dismissal from Park Avenue Securities on 4/17/2020. He was permitted to resign after an investigation into an unapproved private securities transaction in which he was involved. Furthermore, he also solicited clients for this private transaction.
Selling Away
Brokers are required to disclose outside business activity and get prior approval from their broker-dealer before they conduct a transaction away from the firm. Sometimes they don’t because they know it won’t be approved and push the transaction on their customers to earn the compensation from the investment.
Nicholas Palumbo is accused of involvement in an unapproved private securities transaction (selling away). Broker-dealers are responsible for monitoring the activity of their clients and uncovering unapproved outside activity. FINRA arbitration claims may be made against the brokerage firm the broker was working for when selling away occurred.
Some of the common investments associated with selling away are:
- Promissory notes
- Unregistered securities
- Hedge funds
- Real estate investments
- Third-party investment advisor services
- Oil & gas partnerships
- Multi-level marketing
- Small business and startup investments
Did You Invest With Nicholas Palumbo?
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