Erez Law is investigating claims regarding David Alexander Lange (CRD #4198134, Meridian, Idaho). Lange recently submitted an AWC in which he was barred from association with any FINRA member in any capacity. See FINRA Case #2014040505802.
Lange was associated with Lincoln Financial Securities Corp., from August 2009 until his termination in March 2014. The Form U-5 filed by Lincoln Financial with FINRA to terminate Lange’s registration stated that “the RR was terminated for his involvement in an unreported outside business activity, failure to submit required books and records to his OSJ, and for failing to complete required certifications and firm element training.”
FINRA found that Lange failed to refused to appear for FINRA-requested on-the-record testimony involving an investigation into whether he was involved in an unreported outside business activity. In entering into the AWC, Lange neither admitted nor denied FINRA’s findings.
FINRA Rule 3040, formerly NASD Rule 3040, provides that a broker may only sell securities with the knowledge and approval of his or her firm. When a broker sells securities without processing the order through the firm and without the firm’s permission or knowledge, this violates FINRA rules and is known as “selling away.” Federal and state law define securities broadly. Therefore, even products such as leasing arrangements or promissory notes, may be securities which require firm approval. Selling away often involves investment securities that are in the form of a private placement or other non-public investment.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Lincoln Financial Securities Corp. may be liable for investment or other losses suffered by Lange’s customers.
If you were a client of Lincoln Financial Securities Corp. or Lange, and have suffered investment losses or financial irregularities or invested in promissory notes or limited partnership agreements, please contact Erez Law to explore your legal options, Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”