Dennis Farrah, Formerly of Taylor Capital Management, Barred by FINRA and SEC After Allegations of Selling Away

Farrah was being investigated based on allegations that he sold securities away from his member firm without their knowledge or approval.

The Sonn Law Group is investigating allegations that Dennis Farrah was selling away. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Dennis Farrah - Taylor Capital ManagementDennis Farrah (CRD#: 2703960) was suspended by FINRA for failing to provide documentation and information requested by FINRA in June 2018. FINRA was investigating Farrah regarding allegations referenced in an amended Form U5, which stated that Farrah had sold securities away from his member firm without their knowledge or approval. 

“Selling away” occurs when a broker solicits a client to purchase securities not held or offered by the brokerage firm. Brokerage firms generally have lists of approved products that can be offered by their brokers to clients of the firm. These approved products have usually undergone due diligence screenings and have been identified by the firm’s screening personnel as solid products.

When a broker sells away from the firm’s list of approved products, they run the risk of selling something for which due diligence has not been completed. As a general rule, such activities are a violation of securities regulations.

Farrah was registered with Taylor Capital Management (“TCM”) from October 2013 until December 2017. He was allowed to voluntarily resign from TCM at that time. After he resigned, TCM was advised by the Colorado Division of Securities that the Division was prepared to file charges against Farrah for selling away short-term real estate notes without advising TCM of his intention to do so. TCM was further advised that the Colorado Division of Securities was seeking a bar from the securities industry in Colorado for Farrah. 

In January 2018, the Colorado Division of Securities barred Farrah from association with any licensed broker-dealer, investment adviser, or federally covered adviser that conducts business in Colorado based on allegations that he sold securities without the knowledge or written approval of his broker-dealer and the transactions were not recorded on the books and records of TCM. 

Since his resignation, Farrah has been named the subject of 5 customer disputes. The total damages sought in the disputes is in excess of $3,800,000. In July 2018, Farrah was charged criminally with one count of securities fraud. The charge is still pending. 

In March 2020, Farrah was barred by the SEC. Their findings stated that between March and April of 2017, while employed as a sales representative at TCM, Farrah solicited and facilitated the sale of securities of a purported real estate investment company without knowledge or written approval of TCM. 

Contact Us Today

The Sonn Law Group is currently investigating allegations that Dennis Farrah was selling away. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.