Gautam Arora (CRD#: 5443201), formerly a registered representative with Transamerica Financial Advisors, Inc. (CRD#: 16164) in Orange, California, has been terminated from his position with Transamerica Financial Advisors, Inc., according to his BrokerCheck record accessed on January 17, 2020. Gautam Arora joined Transamerica Financial Advisors, Inc. on February 22, 2013 and was terminated on December 12, 2019.
What happened to lead to Gautam Arora’s termination? The firm learned that Gautam Arora attempted to sell away from the firm, soliciting clients to invest in unapproved investments not authorized by the firm. Transamerica Financial Advisors, Inc. also alleged that Gautam Arora arranged promissory notes for these clients without getting prior authorization from the firm.
When brokers sell investment products that have been approved by their member firms, this is known as “selling away.” Brokerage firms keep lists of investment products that they have vetted and approved. When brokers decide to sell a different product without their member firm knowing, it is a violation of FINRA rules and is problematic because these investment products have not been vetted by the firm and may not be suitable, potentially leading to significant losses to investors.
Promissory notes are a major way that brokers “sell away” from their member firms. These promissory notes are often for companies that sound exciting but may ultimately end up collapsing. The Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) warn investors that legitimate promissory notes are typically only marketed to sophisticated investors who can afford to take large risks.
If Gautam Arora was your broker and you have questions about your investments, don’t hesitate to contact a securities attorney. Call (877) 238-4175 or email email@example.com for your free case consultation with the securities attorneys of Fitapelli Kurta.