CHICAGO, Oct. 13, 2014 (GLOBE NEWSWIRE) -- Stoltmann Law Offices announces it is investigating former Linsco Private Ledger (LPL) financial advisor James "Jeb" Bashaw and the supervision of him by LPL. Recently, Mr. Bashaw was fired from LPL for several allegations, including participating in private securities transactions without providing written disclosure to and obtaining written approval from LPL, according to his report on CRD. Engaging in securities transactions without broker-dealer approval is commonly known as "selling away" in the securities industry, one of the most common allegations of breaking industry rules made against registered reps. Mr. Bashaw allegedly also borrowed from a client and engaged in a business transaction that created a potential conflict of interest, according to the CRD report.
According to Chicago securities fraud attorney Andrew Stoltmann, "Brokerage firms are required to reasonably supervise the activities of their financial advisors. Selling away is a common occurrence at brokerage firms so the firm's compliance department and supervision division must diligently guard against these sorts of activities. Failure to do so can make the firm liable for all of the damages sustained by the investor. Often in selling away schemes, there are red flags of potential misconduct that should have alerted the firm to the activity."
According to Stoltmann, "Our law firm has filed dozens of FINRA arbitration claims against LPL and other brokerage firms for selling away, fraud, conversion and unsuitable investment recommendations. We encourage clients of James "Jeb" Bashaw to call our law firm at 312.332.4200 or visit www.InvestmentFraud.PRO for a free consultation by an attorney as to how selling away related losses can be recovered through a lawsuit or FINRA arbitration claim against LPL."