Have you invested money with Talman Harris in the past? If so, you need to be aware of the fact that the Financial Industry Regulatory Authority (FINRA) has permanently barred this individual from acting as a broker or associating with any firm that buys or sell securities.
According to records maintained by FINRA, which can be reviewed using the agency’s free BrokerCheck tool, Mr. Harris was terminated by the New York-based brokerage firm Radnor Trading & Research in 2015. This is the last place he worked in the industry before he was permanently barred for making fraudulent misrepresentations to investors.
The Allegations Against Talman Harris
In March of 2016, the Financial Industry Regulatory Authority (FINRA) Office of Hearing Officers (Disciplinary Proceeding No.#2009019108901) reached a final decision regarding the fate of Talman Harris. According to investigators, Mr. Harris and his associate William Scholander violated securities law and multiple industry regulations. More specifically, the Commission found that Mr. Harris:
- Fraudulently left out relevant facts when soliciting the purchase of securities; and
- Engaged in outside business transactions without providing his member firm with the required timely notice.
The underlying issue in this case involves a company called Deer Consumer Products, Inc. (DEER). According to court records, DEER is a firm based out of Shenzhen, China that purportedly designs and manufactures appliances and other home products. Beginning in 2008, Talman Harris, along with William Scholander, began to aggressively recommend that their clients purchase securities of Deer Consumer Products.
Over a period that lasted ten months, Harris sold at least 42 different investors nearly $1,000,000 in DEER securities. However, completely unbeknownst to these customers, Harris actually had deep financial ties to DEER. While his clients were led to believe that DEER securities just happened to offer a good opportunity, they were not informed that Harris received a $350,000 payment from DEER a few months prior to making the recommendations. At no point did Harris ever disclose this payment.
Industry rules require that brokers disclose whether or not they have financial relationships with the firms that they are recommending clients as investments. Mr. Harris’s failure to make such a disclosure is a direct violation of FINRA rule 2010, which requires brokers to conduct business with high standards of commercial honor and just and equitable principles of trading; and is also a violation of FINRA rule 2020, which prohibits manipulation or deception in the course of selling securities. The bottom line is simple: making a misrepresentation to an investor, even if only through omission of a material fact, is securities fraud.
Were You a Victim of Securities Fraud?
The experienced investment fraud team at the Sonn Law Group is standing by, ready to help. If you lost money because you invested with Talman Harris, you may be entitled to significant compensation. For qualified legal assistance please call our office today at 1-877-969-2412 to request a your free case evaluation. From our primary office in South Florida, we represent investors throughout the United States and Puerto Rico.