According to FINRA, Todd Michael Lesk was barred from association with any FINRA member in all capacities for refusing to provide information and documents and to appear for on-the-record testimony requested by FINRA. The investigation concerned whether Lesk recommended that his customer invest in a crypto asset offering away from his member firm, commonly known as "selling away."

Selling away occurs when registered representatives recommend or facilitate investments in products or transactions outside the scope of their employment with their firm, without the firm's knowledge or approval. This practice is prohibited because it circumvents the firm's supervisory systems designed to ensure that recommendations are suitable and that the investments are legitimate. Selling away is particularly problematic in the crypto asset space, where many offerings are unregistered securities and may be fraudulent.

The investigation into Lesk's conduct focused on whether he steered a customer toward a crypto asset offering that was not offered through his firm. Such recommendations can expose customers to significant risks, including investing in unregistered securities, dealing with unscrupulous promoters, and losing the protections that come with investing through a regulated broker-dealer. By refusing to provide information, documents, and testimony, Lesk prevented FINRA from determining the full scope of his activities and whether customers were harmed.

Lesk's refusal to cooperate demonstrated a fundamental unwillingness to be accountable to the regulator, which justified the complete bar from the industry. For investors, this case serves as a warning about crypto asset offerings, particularly those recommended by financial professionals outside of their firms. If a broker or financial advisor recommends an investment opportunity involving crypto assets or any other product that is not available through their firm, investors should be extremely cautious. Such recommendations may constitute selling away and should prompt investors to verify the legitimacy of the offering and consult with other advisors before proceeding. Always verify a financial professional's background through BrokerCheck and be wary of those who have been barred or suspended for regulatory violations.