National investment fraud lawyers KlaymanToskes is investigating Chad Mitchell Koehn (CRD# 2216169) after the broker received a one year suspension and $10,000 fine in connection with findings that he engaged in private securities transactions (selling away), totaling approximately $1,475,000, without receiving approval from his previous firm, SA Stone Wealth Management, Inc. in Salina, KS.
Investors that suffered losses with Chad Mitchell Koehn at the Salina, KS branch of SA Stone Wealth Management and/or United Capital Management are encouraged to contact Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss recovery options.
Koehn entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA’s Department of Enforcement on October 21st, 2022. The AWC states that Koehn violated FINRA Rules 3280 and 2010 by participating in private securities transactions (selling away) totaling approximately $1,475,000 in sales, to at least 34 SA Stone Wealth Management customers. He did not provide notice to or receive approval from his firm.
According to the AWC, SA Stone Wealth Management filed a Uniform Termination Notice ( Form U5) for Securities Industry Registration for Koehn on October 30th, 2020, stating that he voluntarily resigned from the firm.
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 choose to offer clients securities that are unapproved by their firm, they generally do so with the expectation that they will be paid a “selling compensation,” and 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 Chad Mitchell Koehn at SA Stone Wealth Management’s Salina, KS branch and/or United Capital Management’s Salina, KS branch, you are encouraged to immediately contact KlaymanToskes at (888) 997-9956 for a free 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