National investment fraud lawyers KlaymanToskes is investigating Christopher Todd Joseph (CRD# 6841532) after the former Royal Alliance Associates financial advisor, based in Toledo, Ohio, received a regulatory suspension and fine in connection with undisclosed outside business activities and private securities transactions.
If you suffered investment losses with Christopher Todd Joseph at Royal Alliance Associates, Inc. and/or Signator Investments, Inc. in Toledo, OH, you are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options.
Christopher Todd Joseph entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA’s Department of Enforcement on January 12th, 2022. The AWC states that Joseph is required to pay a fine of $10,000 and will remain suspended for six months, from January 18th, 2022 to July 17th, 2022. Joseph allegedly violated FINRA Rules 3270, 3280 and 2010 by participating in outside business activities (“OBAs”) and private securities transactions (selling away).
According to the AWC, in November 2018, Joseph became associated with Royal Alliance Associates, Inc. following a mass transfer of registered representatives from Signator Investments Inc. to Royal Alliance. In January, 2020, Royal Alliance Associates filed a Uniform Termination Notice for Securities Industry Registration (Form U5) which noted Joseph’s resignation from Royal Alliance, following an internal review for failure to disclose an OBA.
While registered with Royal Alliance, from March 2018 through January 2020, Joseph allegedly engaged in private securities transactions without providing notice or receiving approval from his firm. Specifically, the AWC states Joseph “participated in the sales of $462,500 of convertible notes to 15 investors who were friends and family of Joseph and his wife.” In addition, between April 2018 and January 2020, Joseph failed to provide written notice of two outside business activities to his firm.
According to securities attorney Lawrence L. Klayman, “While Joseph had a responsibility to disclose outside business activities, the firm needed to have reasonably designed supervisory policies to detect this sort of noncompliance with industry customs and rules.”
FINRA Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.”
“Selling away” in private securities transactions occurs when a broker or investment advisor engages in selling an investment to a customer that is not offered by the executing brokerage firm, and without the approval of his/her brokerage firm.
When brokers and financial advisers choose to offer their customers securities that are unapproved by their firm, they may be subject to FINRA sanctions. FINRA-regulated brokers and advisors are required to disclose “outside business activities” to regulators and their firms. Investors can review their broker’s “outside business activities” by using FINRA’s free Brokercheck tool.
If you suffered investment losses with Christopher Todd Joseph at Royal Alliance Associates, Inc. and/or Signator Investments, Inc. in Toledo, OH, you are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss your legal options.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com