A FINRA Office of Hearing Officers order suspended former Transamerica Financial Advisors, Inc. broker Artak Daldumyan of Glendale, California for engaging in multiple outside business activities without timely notifying his employing firm, including involvement in real estate, marketing and receiving compensation for serving on a third-party bank's board of directors. FINRA also fined him $12,500.
The investigation states that Daldumyan invested $315,000 in the limited liability real estate company "199 RR," in exchange for which he received a 35% ownership stake and entitlement to profits or losses in the company.
Daldumyan also purportedly joined the board of directors of a local GSB bank and invested $100,000 via private placement in return for 50,000 shares of stock. The report states that beginning in 2011, Daldumyan received $1,000 per month as compensation for serving on the bank's board of directors.
Finally, FINRA charged Daldumyan with engaging in two other outside business activities—serving as a real estate agent and participating in marketing activities for a resort development in Armenia, in which Daldumyan purchased two condominium units.
Additionally, Daldumyan allegedly failed to disclose a judgment lien filed against him and a business belonging to him in Los Angeles County related to a defaulted mortgage.
Daldumyan's BrokerCheck report indicates that following an internal firm review, Transamerica terminated his employment based on the allegations of participation in the various unapproved activities.
FINRA Rule 3270 pertains to outside business activities and requires brokers to provide prior written notice to their member firms of "any business activity outside the scope of the relationship with his or her member firm," in part, to cast a light on potential conflicts of interest, selling away practices and other issues that can arise from "off the radar" investment activity.
If you have invested with Artak Daldumyan or any broker, financial adviser or securities representative whose involvement in outside business activities or private securities transactions has proven harmful to your financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.