Background Of Norman Stanley Batansky (CRD No. 834388)
Batansky entered the securities industry in 1968 and since that time has been associated
with nine FINRA members, including LPL Financial LLC, where he was registered as a
General Securities Representative between August 2016 and March 2019. According to a
Form U5 dated March 19, 2019, LPL terminated Batansky because he violated the firm’s
policies regarding private securities transactions. FINRA retains jurisdiction over
Batansky because of his current registration with another FINRA member. Batansky does
not have any relevant disciplinary history.
Activity(s) Reported – Norman Stanley Batansky
Private Securities Transaction
FINRA Rule 3280(a) prohibits any associated person from participating “in any manner
in a private securities transaction except in accordance with the requirements of this
Rule.” Rule 3280(b) requires the associated person, prior to participating in any private
securities transaction, to provide written notice to the member “describing in detail the
proposed transaction and the person’s proposed role therein and stating whether he has
received or may receive selling compensation in connection with the transaction.” A
violation of Rule 3280 constitutes a violation of Rule 2010.
On October 26, 2016, Batansky forwarded his son JB, an LPL customer, an email
concerning an investment opportunity in XYZ, a then privately held medical device
company. Attached to the email was an investor overview, convertible note term sheet
and a subscription agreement. That same day, using his personal email account, Batansky
sent XYZ’s placement agent his son’s residential address and date of birth.
Approximately an hour later, Batansky used his personal email account to inform the
placement agent that JB “will do $50,000 of [XYZ].”
The next day, Batansky asked his sales assistant to email the placement agent a scanned
copy of JB’s signed subscription agreement for his $50,000 investment, a completed
investor profile and questionnaire, and a W-9 tax form. Batansky thereafter arranged
through his branch office’s operations department to wire $50,000 from JB’s brokerage
account to JB’s personal bank account. Batansky prepared and emailed JB a draft letter of
instruction to JB’s bank to wire $50,000 from JB’s his account to XYZ’s bank account.
In early November 2016, JB completed his $50,000 investment in XYZ. Batansky did
not receive any compensation in connection with JB’s investment. In April 2017,
Batansky falsely attested in a compliance questionnaire that he had not participated in
any private securities transactions during the prior year.
Therefore, Batansky violated FINRA Rules 3280 and 2010.
Books and Records
Section 17 of the Securities Exchange Act of 1934 and its Rule 17a-4(b)(4) requires LPL
to preserve for three years all business-related communications received and sent by the
firm. FINRA Rule 4511 requires LPL to make and preserve books and records in
conformity with Exchange Act Rules, including Rule 17a-4. Given that securities-related
emails fall within the purview of Rule 17a-4, a registered representative who causes his
member firm to fail to comply with its recordkeeping obligations under Exchange Act
and FINRA rules violates FINRA Rule 4511. Causing a firm to violate its recordkeeping
obligations constitutes a violation of FINRA Rule 2010.
Between October 2016 and September 2018, Batansky used his personal email account to
send a total of 32 securities-related emails that were not monitored or retained by LPL.
Specifically, Batansky sent 26 emails to two long-time friends, who were also LPL
customers, about research reports and marketing materials related to biotech companies
that could present an investment opportunity for these firm customers; four emails to one
of those customers about activity in his LPL account; and two emails to the XYZ
placement agent in connection with JB’s $50,000 investment. Between October 2016 and
April 2018, Batansky attested in three compliance questionnaires that he understood that
he must use LPL or approved DBA email addresses for all business-related
communications with all clients and prospects.
Therefore, Batansky violated FINRA Rules 4511 and 2010.
Penalties And Sanctions
- A 30-day suspension from associating with any FINRA member in any capacity
- A $7,500 fine
The sanctions imposed in this AWC shall be effective on a date set by FINRA.
Respondent agrees to pay the monetary sanction upon notice that this AWC has been
accepted and that such payment is due and payable. Respondent has submitted an
Election of Payment form showing the method by which he proposes to pay the fine
imposed. Respondent specifically and voluntarily waives any right to claim an inability to
pay, now or at any time after the execution of this AWC, the monetary sanction imposed
in this matter.
Respondent understands that if he is suspended from associating with any FINRA
member, he becomes subject to a statutory disqualification as that term is defined in
Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the
Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See FINRA Rules 8310 and 8311.
Recent Activity(s)Of The Individual/Firm
During October and November 2018, Batansky participated in one private securities
transaction by facilitating a $50,000 investment by his son, who was also a customer, in a
convertible promissory note, without providing prior written notice to his firm, in
violation of FINRA Rules 3280 and 2010. Additionally, over the same period, Batansky
used his personal email address, which was not disclosed to the firm, to communicate
about securities-related matters with three customers, including his son, and with a
placement agent concerning his son’s private securities transaction in violation of FINRA
Rules 4511 and 2010.
How To Spot A Fraud Finance Advisor (Infographic)
Help For Victims Of Norman Stanley Batansky
If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from Norman Stanley Batansky. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.
Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.
Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.
Norman Stanley Batansky has been involved in fraudulent activities and is an unsafe professional entity. We strongly recommend you avoid any association with such a shady figure.
- Shady Activity
- Swindling Activity Reported By Clients
- Under Govt. Organization's Radar
- High Risk of Fraud