FINRA Complaint: Miami-Dade County Broker Improperly Engaged in Improper Outside Business Activities (OBAs)
Robert Henderson (CRD#: 1160413) is a previously registered securities broker. From December of 2010 to November of 2019, Mr. Henderson was a representative of IFS Securities, where he was based out of a branch office in Miami Lakes, Florida. Previously, this financial advisor was also associated with First American Capital and Trading Corp. and 1st Discount Brokerage.
On December 6th, 2019, the FINRA Department of Enforcement filed a complaint against former IFS Securities financial advisor Robert Henderson (Disciplinary Proceeding No. 2017053462401). Among other things, the agency alleges that Mr. Henderson violated FINRA Rule 3270 and FINRA Rule 2010. Here, our Miami selling away attorneys provide an overview of the complaint.
Allegations: Former Florida Broker Robert Henderson Violated FINRA Rule 3270
In its complaint, FINRA alleges that former IFS Securities broker Robert Henderson improperly engaged in undisclosed outside business activities between 2010 and 2018. Beyond securities industry regulations, IFS Securities also had internal rules requiring its representatives to disclose any outside business activities to the firm. FINRA contends that Mr. Henderson operated several undisclosed businesses while he was working as a representative at the firm, including:
- SWH Holdings Corp: A company that built and sold condo properties in South Florida.
- 2001 Florida LLC: A company that owns and operates a number of rental properties in Miami Beach.
- RHPTJ Managers, LLC: A holding company that engaged in complex transactions with several of his other business interests.
In addition to failing to disclose outside business activities, the FINRA Department of Enforcement also alleges that Mr. Henderson failed to notify regulators that he had four different federal tax liens entered against him. Under securities industry, this type of adverse financial information should be disclosed so that investors can be made aware of all relevant financial details and information.
Registered Representatives Must Disclose and Get Approval for Outside Business Activities
The securities industry has strict rules regulating outside business activities by registered representatives. While financial advisors are allowed to engage in other business, they must let their firm know ahead of time. Under FINRA Rule 3270, brokers and investment advisers are prohibited from engaging in outside business transactions unless they:
- Provide written notice to their member firm; and
- Their member firm approves of the activities.
Registered brokerage firms have a legal responsibility to protect their customers. One of their duties is to ensure that the outside business activities of individual brokers do not pose a risk to their clients. If financial advisors fail to request and receive permission for their outside business transactions, it could put investors at risk.
Call Our Miami, FL Securities Selling Away Losses Attorneys Right Away
At Carlson & Associates, P.A., our Miami selling away lawyers have the skills, experience, and diligence to protect the rights and interests of our clients. If you lost money working with a broker who was selling away, we can help. To arrange a strictly confidential case evaluation, please call us (305) 372-9700. With a law office in Miami, we serve communities in Southeastern Florida and beyond.