Notice to Clients of Christopher Tolmacs and Triad Advisors: The Securities Arbitration Law Firm of Klayman & Toskes¸ P.A. has Commenced an Investigation into Potential Sales Practice Violations by Triad Advisors in Light of Recent Regulatory Action Alleging that its Broker Christopher Tolmacs Impermissibly Sold Promissory Notes to his Clients
New York (Globe Newswire) – July 15, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes¸ P.A. (“K&T”), www.nasd-law.com, has commenced an investigation into potential sales practice violations by Triad Advisors in light of recent regulatory action alleging that its Broker Christopher Tolmacs (“Tolmacs”) impermissibly sold promissory notes to his clients.
The Financial Industry Regulatory Authority (“FINRA”) recently filed a regulatory action against former Triad Advisors registered representative and Harbinger Asset Management, LLC investment advisor Tolmacs (FINRA No. 20160489663-01). The investigation concerned allegations that Tolmacs entered into lending arrangements through promissory notes with several of his customers. Providing loans or selling promissory notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice which is commonly referred to in the industry as “selling away.”
On March 10, 2016, Tolmacs was barred from the securities industry after he failed to fully cooperate with the abovementioned FINRA investigation. Prior to being barred from the securities industry, Tolmacs was employed by Triad Advisors in Portage, Michigan and also managed a couple of his own businesses, including Harbinger Financial Group and Harbinger Asset Management. According to securities attorney Lawrence L. Klayman, “Triad Advisors is responsible for adequately supervising its registered representatives. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for any resulting investment losses sustained by customers.”