FINRA Bars Broker in Relation to Investigation into Undisclosed Outside Business Activities

Mark Frederic Seruya (CRD #1108375) is a previously registered broker and previously registered investment adviser (RIA). He is listed by FINRA as a resident of Sunny Isles, Florida. From June of 2009 to August of 2024, Mr. Seruya was a representative of Morgan Stanley. Recently, FINRA barred this broker for his failure to cooperate with an investigation into alleged undisclosed, improper outside business activities. Here, our Miami selling away investments attorney provides a more comprehensive overview of the case.

Barred Broker: Former Morgan Stanley Representative Mark Frederic Seruya 

FINRA took enforcement action against securities broker and RIA Mark Frederic Seruya after he failed to cooperate with an investigation into allegations of misconduct. The self-regulatory body issued a Letter of Acceptance, Waiver & Consent (AWC) that permanently barred Mr. Seruya from associating with any FINRA member in any capacity. The AWC states that Mr. Seruya refused to provide documents and information requested by FINRA during its inquiry into separation from Morgan Stanley. That is a violation of FINRA Rule 8210.

Notably, FINRA’s enforcement action against former Morgan Stanley broker/RIA Mark Frederic Seruya followed his departure from the firm itself. According to information available through FINRA’s Brokercheck tool, Mr. Seruya “mutually agreed to separate” after the internal probe flagged two big issues. First, the review determined that he failed to disclose outside business ventures involving clients to the compliance department. Further, Mr. Seruya reportedly used unapproved messaging tools for client and company communications.

 Selling Away: An Overview of FINRA Rules on Private Securities Transactions and OBAs 

Selling away is when a broker offers or sells securities or other investment products that are not approved by or offered by their member firm. When people refer to “selling away” by brokers, they could be thinking of private securities transactions, outside business activities, or a combination of both. Here is an overview of FINRA regulations.

• Private Securities Transactions: Under FINRA Rule 3280, brokers must disclose and receive written approval from their firm before participating in any private securities transactions outside the scope of their employment. The sales of securities not offered by their firm are covered even if no compensation is received. The rule is designed to protect investors and ensure firms can supervise all securities-related transactions.
• Outside Business Activities (OBAs): FINRA Rule 3270 requires registered representatives to provide prior written notice to their firm before engaging in any outside business activity. Among other things, OBAs include any paid or unpaid work outside the scope of their role with the firm. The rule ensures firms can evaluate potential conflicts of interest and supervise the representative’s conduct to protect client interests.

 Contact Our Miami Selling Away Attorney Today

At ​Carlson & Associates, P.A., our Miami investment fraud attorney is a strong, aggressive advocate for investors. If you suffered any financial loss because a broker sold away from his or her member firm, we can help. Contact us today for a confidential initial case review. Our firm handles broker negligence cases in Miami, South Florida, and throughout the wider region.

Source:

brokercheck.finra.org/individual/summary/1108375