According to FINRA, Olivier Robert Gillier was assessed a deferred fine of $15,000 and suspended from association with any FINRA member in all capacities for 12 months for participating in a private securities transaction without providing prior written notice to his member firm.

Gillier made a capital contribution of $300,000 in exchange for Class A membership interests in a limited liability company formed to purchase and manage a building in New York. Gillier also facilitated the investments of three individuals, including one firm customer, who invested a total of more than $2 million in Class B membership interests in the LLC. The right to manage the LLC was vested exclusively in a managing member. Neither Gillier nor the Class B investors had any role in the operation or management of the building. Class A and Class B members expected to share in potential LLC profits according to their membership percentages. These membership interests were investment contracts constituting securities.

Gillier's involvement in the LLC was outside the scope of his employment with the firm, and he did not provide prior written notice to the firm before investing in the LLC or facilitating the investments of the Class B investors. Additionally, Gillier falsely certified on the firm's annual compliance attestations that he had not engaged in any private securities transactions that had not been previously disclosed to the firm.

Investors should understand that private securities transaction rules, often called selling away, require representatives to provide written notice to their firms before participating in securities transactions outside their employment. This allows firms to evaluate potential conflicts of interest, assess risks to customers, and provide appropriate supervision. The case is particularly serious because Gillier facilitated investments by three other individuals, including a firm customer, and then falsely certified compliance on annual attestations.