Allegation’s Seriousness, Case Information, and Investor Impact
The severity of financial advisor misconduct can’t be underestimated. The allegations against Akinfolarin Sessi are deeply concerning, not least because they involve suspected instances of “selling away.” This is not a trivial infraction but a major violation that can cause significant damage to investors and the broader industry. It’s an issue so severe that The Financial Industry Regulatory Authority (FINRA) felt it necessary to bar Sessi from conducting business on November 18, 2024.
Sessi’s case came into focus after reportedly refusing to cooperate with FINRA’s inquiries into his conduct. The investigation specifically focused on his suspected engagement in business activities outside his role at Edward Jones, a reputed brokerage firm. Such actions represent a stark departure from the general norms guiding registered brokers.
Investors often trust financial advisors to act in their best interest. When incidents such as “selling away” occur, it not only harms the immediate victims but also undermines faith in the wider financial industry. It’s a reminder of the adage by Warren Buffet: “It takes 20 years to build a reputation and five minutes to ruin it.”
Akinfolarin Sessi’s Background: Broker Dealer and Past Complaints
According to FINRA’s BrokerCheck, a service that allows the public to research the background of brokers and brokerage firms, Sessi had associations with Edward Jones (a brokerage firm with CRD#:250) during two time periods. His first stint was from July 18, 2017, to February 14, 2018, based out of Florissant, MO. Then he rejoined the firm in St. Louis, MO, on March 28, 2018, a tenure that ended on August 19, 2024.
An Easy-to-Understand Explanation of the FINRA Rule
FINRA, the authority responsible for overseeing brokerage firms and their employees in the United States, has stringent rules against “selling away.” This type of misconduct occurs when registered broker-dealer employees conduct business transactions outside the scope of their employment without their employing firm’s knowledge or consent. It’s a serious violation because these transactions can expose investors to potential fraud or unsuitable investment risks. The broker-dealer firm might not have conducted the necessary due diligence, and the investments are not on their radar, making them essentially unsupervised.
Consequences and Lessons Learned
The FINRA ruling serves as a sobering reminder of how crucial it is for investors to understand exactly where their money is going. The allegations against Sessi highlight the potential hazards of unsupervised investments. The fact that an advisor could operate outside of their registered firm’s purview to the detriment of their clients underscores the importance of ongoing vigilance.
As an investor, it is vital not only to trust your financial advisor but also verify their recommendations. A 2017 study by the FINRA Investor Education Foundation found that investors working with financial advisors are more likely to fall for financial fraud than those without advisors.
These cases serve as stark reminders of the need for proactive investment practices. Investors should maintain an open dialogue with their advisors, rigorously research investment opportunities, and utilize resources like FINRA’s BrokerCheck to keep a tab on their broker’s diligence and integrity.
Last modified: November 22, 2024
