South Florida Broker Barred By FINRA After Refusing to Cooperate With Investigation Into Possible Undisclosed Outside Business Activities
Clark Morris Nobil (CRD#: 348552) is a former FINRA securities broker and previously registered investment advisor (RIA). From February of 1991 to August of 2019, Mr. Nobil was a representative with the firm Clark Nobil & Co.—where he was based at a branch location in Hallandale Beach, Florida.
Recently, Mr. Nobil was indefinitely barred from the securities industry after he failed to cooperate with a regulatory investigation into allegations that he engaged in undisclosed outside business activities (OBAs). Below, our Miami investment fraud attorneys provide an overview of the allegations against this securities representative and explain a financial advisor’s duty to disclose.
FINRA: Broker Refused to Produce Documents and Records
The Financial Industry Regulatory Authority opened up an inquiry into financial advisor Clark Nobil after he was appointed a trustee of two different Florida-based trusts. Securities regulators were concerned that Mr. Nobil may have been engaged in outside business activities that should have been disclosed as they warranted a potential conflict of interest.
Legal representatives for Mr. Nobil confirmed that he received FINRA’s request for documents and records related to its investigation. However, they stated that he did not intend to comply with these requests. Failure to produce documents or testimony related to an official investigation is a breach of FINRA Rule 8210. Although he did not admit to or deny any wrongdoing in this case, Mr. Nobil consented to an indefinite bar from the securities industry.
Investors Deserve Protection: Outside Business Activities Must Be Disclosed
Under securities industry rules, investors have a right to know if their registered broker is engaged in any outside business activities or private securities transactions that may constitute a conflict of interest.
More specifically, FINRA Rule 3270 and FINRA Rule 3280 mandate that representatives must notify their member firms of OBAs and private securities transactions (PSTs) prior to engaging in them. With this information, it is up to the brokerage firm to determine if the activity/transaction is appropriate or, alternatively, if it creates unacceptable risks for investors.
Broker-dealers can stop their financial advisors from participating in OBAs or PSTs. If a firm allows a representative to engage in either type of transaction, then the firm becomes legally responsible for overseeing the financial advisor’s conduct. It is up to the broker-dealer to ensure that investors are properly protected.
Call Our Miami, FL Securities Fraud Lawyers for Immediate Assistance With Your Case
At Carlson & Associates, P.A., our Florida investment losses attorneys are strong, solutions-oriented advocates for our clients. If you or your family member suffered financial damages due a broker’s outside business activities or private securities transactions, we are here to offer guidance and support. You may be entitled to financial compensation for your investment losses. Call us now for a fully private assessment of your case. With an office in Miami, we represent investors throughout the state of Florida.