Independent Financial Group Broker Russell Sadler Suspended by FINRA

Silver Law Group is investigating Independent Financial Group, LLC (CRD# 7717) broker Russell Leo Sadler (CRD# 2600742) after FINRA suspended him for an entire year over allegations of conducting business outside of his firm.

FINRA suspended Sadler for a full year in September 2016 after the regulatory body and Sadler entered into an Acceptance, Waiver & Consent (“AWC”). According to the AWC, Sadler consented to the entry of findings that he engaged in private securities transactions without providing prior written notice to his member firm or receiving written approval from the firm.

The findings state that Sadler invested at least $200,000 in the securities of a company which had proposed to build a movie studio in Plymouth, Massachusetts.

According to the AWC, Sadler invested $249,000 of his customers’ money in the company. The company, according to the AWC, ultimately failed and Sadler’s customers lost their entire principal.

Outside the movie studio investment, FINRA also found that Sadler formed two Massachusetts companies for which he was the sole officer or managing member without providing written notice to his firm.

Prior to Alejos employment with Independent Financial Group, Cambridge Investment Research, Inc. (CRD# 39543) employed him between February 2013 and September 2014. Prior to Cambridge Investment Research, LPL Financial LLC (CRD# 6413) employed Alejos from July 2001 to February 2013.

Outside business activities are governed by FINRA under FINRA Rule 3270. The rule broadly states that a registered representative may not be compensated or have the reasonable expectation of compensation from any other person or entity as a result of business activity outside the scope of the relationship with the registered representative’s member firm unless the registered representative has provided written notice to the member firm.

Outside business activities need to be approved by the member firm, as the outside activities could frustrate the customer and broker relationship. A broker might be more inclined to recommend investing in business he or she is affiliated with even if the investment would not otherwise be suitable. FINRA Rule 3270 is integral to the broker/brokerage firm-customer relationship.

If you have invested with Russell Leo Sadler and Independent Financial Group, LLC and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.