As an outcome of a settlement apparently reached by financial advisor Daniel T. Minich with the Financial Industry Regulatory Authority (FINRA), he has been suspended and will not be able to associate with any member of the self-regulatory organization (SRO) for a period of 4 months. This is based on information available in the public domain.
Allegations Against Danial Minich
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Minich is believed to have participated in private securities transactions, three of them, adding up to about $200K. These transactions, that happened between June 2019 and October 2019, were undertaken without prior written information having been provided to his firm, Ameriprise.
In June 2019, in the first of these transactions, for which prior notice was not provided to his firm, $50K was allegedly invested in a cryptocurrency-based hedge fund. This money was his own. As a result of this investment, Minich was the recipient of a limited partnership in the firm he invested this money with.
This was followed by Minich advising two of the firm’s customers, purportedly, to invest a total of $150K in the same hedge fund. This was in September and October of 2019. According to FINRA, written prior notice was not given to Ameriprise for these transactions as well.
Minich further compromised his position in January 2020, during the annual attestation, by specifying that other than the ones for which he had received prior clearance from the firm, he had not engaged in any private securities transactions.
His BrokerCheck profiles state that from 14th May 2015, onwards he was a representative of Ameriprise Financial Services in Bradford, PA, till his discharge on 9th June 2020. No current registration is reflected on his profile.
What is Selling Away?
When a transaction that is outside the scope of work of a FINRA-affiliated brokerage firm is conducted by one of its registered representatives, it could be tantamount to ‘selling away.’ It is not an uncommon issue, with several brokers resorting to it from time to time to earn additional income.
Even though such an act may have been done privately by a broker, if a FINRA arbitration claim is filed by an investor, the firm may still be held liable for investment losses that may result to an investor arising from its negligence in supervising its representatives.
Ameriprise’s responsibility in the case of these private transactions done by Minich is the subject of an investigation by Haselkorn & Thibaut.
If you have dealt with Daniel Minich and have concerns that you may be the inadvertent victim of negligence or fraud, you can seek expert advice from the securities attorneys at Haselkorn & Thibaut, which is a national securities regulation/compliance/fraud/arbitration and investor protection law firm with offices in Florida, New York, Texas, Arizona and North Carolina.
Haselkorn & Thibaut can be reached at 1-800-856-3352.