A former veteran financial consultant with an extensive tenure at SagePoint Financial Inc., now known as Osaic Wealth Inc., was recently permanently excluded from the sector. This decision came after the consultant was let go by Osaic in December due to alleged violations of industry norms related to the sale of promissory notes.
The barring of the consultant, David Tall, by the Financial Industry Regulatory Authority Inc. (FINRA) came into effect last February. Tall found himself in hot water with FINRA following a regulatory alert that prompted an investigation into his activities. Despite attempts to reach out to Tall’s office in Costa Mesa, California, it was conveyed that he had retired. Osaic, on its part, has chosen to remain silent on the issue.
Tall’s professional history, as documented in BrokerCheck, reveals that he was dismissed by Osaic after it was discovered he had finalized two promissory note transactions without the necessary pre-approval from the company. The securities industry mandates that all investment products sold to clients must first be vetted and sanctioned by the financial advisor’s broker-dealer, a rule that Tall evidently breached.
Having been a part of the securities field for over 37 years, primarily with SagePoint (formerly AIG Financial Advisors) from 2005 up until December 2023, Tall’s departure underscores a common narrative among long-standing financial advisors. Facing regulatory scrutiny or accusations of misconduct at the twilight of their careers, many advisors opt to step down, avoiding the financial and emotional toll of legal battles.
Industry insiders suggest that this move to retire or resign in the face of allegations is often advised as the most pragmatic course of action, especially for guilty advisors. This is largely because the evidence against them in such situations is typically overwhelming, making any form of defense both challenging and futile.
Promissory notes, a focal point of Tall’s alleged infractions, remain under the close watch of securities watchdogs. Notably, in 2019, the North American Securities Administrators Association highlighted promissory notes and Ponzi schemes as top investor traps, cautioning particularly against short-term promissory notes that might skirt securities registration, often leading to fraudulent activities.
Contact Reif Law Group, P.C. If You Are a Victim of Securities Fraud
If you or someone you know has been affected by securities fraud or similar malpractices in the financial industry, Reif Law Group, P.C. stands ready to offer expert legal assistance and guidance. Reach out to us for a thorough evaluation of your case and to explore the best course of action to protect your rights and interests.
Our team at Reif Law Group, P.C. is well-versed in the complexities of securities law and is committed to upholding the rights of individuals who have been wronged in the financial markets. We understand the nuances of cases involving promissory notes, unauthorized transactions, and other forms of securities fraud. With our deep industry knowledge and legal expertise, we’re equipped to navigate the challenging landscape of financial litigation to secure the justice and compensation our clients deserve.
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