Royal Alliance Sued By Investors For Stockbroker’s Sale Of Unregistered Securities
Darrin Barton Farrow of Rocky River Ohio a stockbroker formerly employed by Royal Alliance Associates Inc. is the subject of a customer initiated investment related arbitration claim in which the customer sought $250,000.00 in damages supported by allegations that the customer was sold unregistered securities during the time Farrow was associated with Royal Alliance Associates resulting in the customer incurring losses. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03895 (Nov. 9, 2018).
FINRA Public Disclosure reveals that Farrow is referenced in two more customer initiated investment related disputes pertaining to accusations of his violative conduct while employed with Royal Alliance Associates Inc. In particular, a customer initiated investment related complaint involving Farrow’s activities was resolved for $12,000.00 in damages founded on allegations that the customer was advised to purchase an annuity that was not suitable for the customer, and the customer was charged excessive fees on investment purchases.
Moreover, on November 2, 2016, a customer filed an investment related complaint concerning Farrow’s activities where the customer sought damages estimated to exceed $5,000.00 based upon accusations that misrepresentations had been made to the customer concerning the liquidity or commitment period for a real estate security that had been purchased by the customer while Farrow was associated with Royal Alliance Associates.
FINRA Public Disclosure additionally confirms that Farrow has been fined $25,000.00 and suspended for twelve months from associating with any FINRA member in any capacity based on findings that Farrow engaged in outside business activities involving companies, MAD Oregon and MAD Farma, which had not been disclosed to the firm by him. Letter of Acceptance Waiver and Consent No. 2015045751101 (June 23, 2016).
According to the AWC, an unincorporated entity was created by Farrow aimed at providing services which were beyond the scope of Farrow’s employment while registered with Royal Alliance Associates. Apparently, Farrow failed to inform the firm about a Delaware limited liability company he founded issuing $1,000,000.00 worth of membership interests to investors, some of which included customers of the firm. Farrow failed to procure approval from Royal Alliance to engage in those outside securities transactions. Consequently, FINRA found Farrow’s private securities transactions violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 3040.
Farrow was terminated by Royal Alliance Associates supported by allegations of the firm being notified about Farrow’s involvement in an unapproved outside business activity involving investments.