← Broker database 2023-06-26
Randall George Skrabonja Barred for Refusing to Cooperate with Investigation into Selling Away
According to FINRA, Randall George Skrabonja was barred from association with any FINRA member in all capacities for refusing to provide documents and information requested during a regulatory investigation.
The investigation concerned the circumstances surrounding Skrabonja's termination from his member firm. The firm had filed a Form U5 stating that it discharged Skrabonja for "selling away" without firm approval. Selling away occurs when registered representatives sell securities or investments that are not approved or offered by their member firm, depriving the firm of the opportunity to conduct due diligence and supervise the transactions.
Selling away is a serious violation because it exposes investors to investments that have not been vetted by the representative's firm and may involve unsuitable, high-risk, or fraudulent products. Representatives often engage in selling away to earn higher commissions than available on firm-approved products, creating a conflict of interest that puts representatives' financial interests ahead of investors' best interests.
When FINRA sought to investigate the selling away allegations, Skrabonja refused to provide the requested documents and information. This refusal prevented regulators from determining the nature and scope of the selling away activity, what investments were involved, how many customers were affected, and whether customers suffered losses.
The permanent bar from the securities industry reflects both the seriousness of the underlying selling away allegation and Skrabonja's refusal to cooperate with the investigation. His refusal to provide information raises serious questions about what he sought to conceal and suggests consciousness of significant wrongdoing. A bar means Skrabonja cannot work in any capacity for any FINRA member firm unless he petitions for re-entry after at least two years, though reinstatement would be difficult.
For investors, this case reinforces the danger of investments offered outside of a brokerage firm's normal business. Investors should be skeptical when representatives suggest "special opportunities" not available through the firm. Before investing, check whether the investment is offered through the representative's firm and conduct independent research. FINRA's BrokerCheck provides information about representatives' disciplinary history and customer complaints.