Eric Savell (CRD#: 4182368), formerly a registered representative with LPL Financial, has been suspended by FINRA for failing to disclose outside business activities. According to his BrokerCheck record accessed on August 27, 2019, Eric Savell entered into an Acceptance, Waiver, and Consent (AWC) with FINRA on August 5, 2019. According to the complaint, “… Savell participated in an outside business activity, by performing work for, and being compensated by the company, without providing prior written notice to his firm. The customer expressed interest in investing in the company, and Savell therefore arranged for a meeting between the customer and the company’s chief executive officer (CEO). Following that meeting, the customer liquidated her account at the firm through Savell and purchased securities, over $160,000, of the company pursuant to a stock purchase agreement.” At the time of the suspension, Eric Savell was not affiliated with any broker-dealer, and remains unaffiliated, as his suspension will last until January 1, 2020.
Did your broker tell you not to mention certain securities transactions to the member firm? Were certain transactions missing from your quarterly account statements? Did the investment seem “too good to be true”? If you answered “yes” to any of these questions, your broker may have engaged in “selling away”, which occurs when brokers buy, sell, or solicit securities away from their member firm. This is a violation of FINRA Rule 3280, as well as federal securities regulations. According to Fitapelli Kurta partner Jonathan Kurta, “It should not surprise anyone that selling away and fraudulent schemes often go hand-and-hand due to a lack of supervision and compliance.”
This recent suspension for failing to disclose outside business activities is not the only disclosure on Eric Savell’s BrokerCheck record. On July 5, 2019, he became involved in a dispute in which a client alleges that the broker’s recommendation of a “promissory note of a 501(c)(3) start-up company was unsuitable.” The client is requesting $208,000 in damages and the matter is pending. When brokers recommend unsuitable securities products, these products, in many cases, have not been fully vetted by their member firms. By failing to take into account a client’s risk tolerance and investment objectives, brokers who make unsuitable recommendations put investors at risk for losses.
Over his 14-year career in the securities industry, Eric Savell has worked for:
- LPL Financial, LLC (CRD#: 6413) in Roseville, California and Granite Bay, California
- Fidelity Brokerage Services LLC (CRD#: 7784) of Sacramento, California
If Eric Savell was your broker or if you have questions about selling away, please don’t hesitate to contact a securities attorney. Call the securities attorneys of Fitapelli Kurta at (877) 238-4175 or email firstname.lastname@example.org.