Palumbo was permitted to resign from Park Avenue Securities while under investigation by the firm.
The Sonn Law Group is investigating allegations that Nicholas Palumbo engaged in “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.
Nicholas Palumbo (CRD#:1069948) was registered as a broker with Park Avenue Securities from 1999 until May 2020. Palumbo was permitted to resign from Park Avenue Securities while under investigation for failing to disclose an unapproved private securities transaction and soliciting clients to invest in [the] same.
Selling away refers to when a broker solicits a client to purchase securities that are not held or offered by the executing brokerage firm. Brokerage firms have lists of approved securities that can be sold to clients. The approved securities have typically undergone due diligence screenings and been identified as products that are safe for clients to invest in. When a broker offers unapproved securities to clients, there are risks that due diligence has not been properly completed. Selling away is a violation of workplace rules in most cases, as well as broader securities regulations.
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The Sonn Law Group is currently investigating allegations that Nicholas Palumbo engaged in 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.