Erez Law is investigating claims regarding Nathan Andrew Harmon (CRD #4988618, San Antonio, Texas) submitted an AWC in which he was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in any capacity for nine months. See FINRA Case #2013037822701. The suspension is in effect from November 3, 2014, through August 2, 2015. Harmon was registered with NEXT Financial Group, Inc., from March 2009 until his termination in January 2014. The Form U5 filed by Next Financial Group with FINRA to terminate Harmon’s registration stated that the reason for the termination was that Harmon “was involved in teh (sic) selling away of fixed index annuities. The product was not approved for sale by NEXT Financial group Inc.”
FINRA found that Harmon engaged in an unapproved outside business activity by selling an equity-indexed annuity, that his member firm had not approved for sale, to a customer and receiving compensation as a result. FINRA also found that Harmon failed to complete an outside business activity disclosure (OBA) form, an OBA questionnaire, or receive the firm’s prior approval to sell the equity indexed annuity as by the firm’s WSPs required. FINRA further reported that when FINRA initially asked Harmon about this activity, Harmon denied that he received compensation from the transaction. In entering into the AWC, Harmon neither admitted nor denied FINRA’s allegations.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. 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. Therefore, NEXT Financial Group may be liable for investment or other losses suffered by Harmon’s customers.
If you were a client of Nathan A. Harmon or NEXT Financial Group, Inc., and have suffered investment losses or financial irregularities, 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.”