April 2024- St. Louis, MO
The FINRA records of Sean Aaron Brady , a former stock broker who is not currently registered and who was last employed by First Allied Securities , disclose that he was permanently barred from the securities industry, terminated from employment and is the subject of a currently pending customer suit seeking damages of over $3 million. More than $2.3 million has already been paid to settle the claims of 8 former customers of First Allied Securities for losses resulting from investments in annuities and alternative investments.
See this for more information on REITs and Other Alternative Investments
Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk. For more investigations involving Alternative Investments, see this.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In June 2018 FINRA permanently barred Sean Brady from the securities industry to resolve allegations that he failed to provide FINRA information and documents requested during an investigation into possible sales practice violations committed by Brady.
In 2022 Missouri securities regulators sanctioned Brady, ordering him to pay disgorgement in the amount of $422,872 and a civil fine of $88,475.
Cases brought by customers of Sean Brady made various allegations relating to mismagement of their accounts, including: .
- unsuitable recommendations on the basis of false account documents
- incorrect account information
- fraud
- negligence
- failure to supervise
- breach of fiduciary duty
Sean Brady was employed by First Allied Securities from 5/2008-10/2017 when he was discharged for violating firm policy pertaining to 1-falsification of signature on documents, 2-text messaging, and 3-preparation of consolidated account reports.
Private Placements under Reg D: What is a Private Placement? According to the U.S. Securities and Exchange Commission (SEC):
“Under the federal securities laws, a company may not offer or sell securities unless the offering has been registered with the SEC or an exemption from registration is available. Offerings exempt from the SEC’s registration requirements pursuant to Securities Act Section 4(a)(2) or its safe harbor under Regulation D of the Securities Act are often referred to as private placements.”
The SEC warns that unregistered offerings may be utilized to conduct investment scams and that investors should have the ability to weather a total loss in these illiquid investments. See this SEC Investor Alert about red flags to watch out for in unregistered offerings.
If you have losses in an account handled by Sean Brady , call for a no charge consultation to learn about your options for recovery of damages from First Allied Securities.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Our Investigations of other First Allied Securities brokers
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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