If you have invested in privately held companies such as Hydro Phi Technologies, Inc. that were recommended by a FINRA registered broker such as Richard W. Preston of Hope, Maine, you may legal claims that can be brought through FINRA arbitration.
According to a recent consent order with the Maine Securities Administrator, on or about January 11, 2011, Richard W. Preston participated in private securities transactions without providing prior written notice to and obtaining prior written authorization from his brokerage firm, Commonwealth Financial Network. Richard Preston was a FINRA registered representative of Commonwealth Financial Network with offices located in Falmouth, Maine.
According to the consent order, Richard W. Preston facilitated the sale of approximately $300,000 in promissory notes and common stock of Hydro Phi Technologies, Inc. of Doraville, Georgia to customers of Commonwealth Financial Network.
This type of stockbroker misconduct is referred to as “selling away”. Selling away describes the situation where a financial advisor or broker like Richard W. Preston recommends securities or investments that are not approved for sale by the firm and not on the firm’s approved product list. The brokerage firm’s approved product list identifies the types of securities and investments that are approved for brokers to sell after the securities have been subjected to the brokerage firm’s due diligence process which includes receiving the necessary risk and compliance department reviews and approvals.
If you have invested in Hydro Phi Technologies or other private securities recommended by Richard W. Preston, please contact the firm today for a FREE, NO OBLIGATION CONSULTATION to discuss your legal rights and options.