What it sounds like
“My stockbroker told me to make my check (or wire) payable to him or XYZ company, and not to my brokerage firm.”
Selling Away occurs when a stockbroker or investment advisor encourages you to make investments “away” from the brokerage firm. Typically, these investments are not authorized or approved by the firm, but the stockbroker or investment advisor encourages the investment because he or she is receiving undisclosed compensation for it, compensation that will not later be shared with their brokerage firm. Selling Away is a very serious violation of FINRA and SEC rules and regulations.
If your stockbroker or investment advisor has ever encouraged you to send your payment for an investment to any person or place other than the brokerage firm where you have your account, you may be the victim of selling away. Contact us for a free consultation.