Nathan Plumb: Did His Outside Business Activity Lead to Your Losses?
Nathan Plumb (CRD #: 4598158), is facing allegations that he engaged in outside business activity. This is according to his BrokerCheck record, accessed on November 11, 2022. “Outside business activity” refers to business outside the scope of their business by their brokerage firm, without the knowledge or approval of their firm. This type of misconduct is often referred to as “selling away.” It is prohibited because firms must supervise their brokers to ensure compliance with securities rules and regulations.
Termination and Resignation
In addition to a FINRA fine and suspension, Nathan Plumb also faced termination from Lincoln Financial Advisors on September 9, 2020. On September 29, 2022, he voluntarily resigned from Wisconsin Capital Management following more allegations of undisclosed outside business activities.
FINRA Rule 3270: Outside Business Definition
Brokers can engage in outside business, but they must seek approval for their outside businesses from their firm.
FINRA Rule 3270 states:
No registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.
Nathan Plumb’s Allegedly Unauthorized Mutual Fund and Consulting Service
According to an Acceptance, Waiver, and Consent agreement, dated September 30, 2022, Nathan Plumb disclosed an outside business–his role as a member of a mutual fund company– to Lincoln Financial Advisors Corporation before registering with the firm. Lincoln approved this outside business. Following this approval, however, Nathan Plumb allegedly added more outside businesses without seeking approval from his firm.
- The AWC alleges that Nathan Plumb’s role expanded in August 2017 to include a role as financial officer and treasurer, which he did not disclose to the firm.
- Then, in January 2017, Nathan Plumb allegedly began providing consulting services to a registered investment advisory firm. Plumb allegedly did not disclose this role until nearly two years later, in December 2018.
- In March 2019, Lincoln denied Nathan Plumb’s request to work for the other investment advisory firm. Despite this, he allegedly continued to work for the other advisory firm during the rest of his time with Lincoln.
Sanctions
As part of the terms of the AWC, Nathan Plumb consented to a four-month suspension and a $10,000 fine.
The AWC
You can read a copy of the Acceptance, Waiver, and Consent agreement here.
Other Outside Businesses
Nathan Plumb has four outside businesses listed on his detailed record:
- Wisconsin Real Estate Agent
- Nathan Plumb / Plumb Funds – Board Member
- Insurance Agent offering Health Insurance and Health Savings Account services
- Air BnB in Madison, Wisconsin
Background Information
You may have worked with Nathan Plumb through one of the following firms:
- Lincoln Financial Advisors (CRD #: 3978)
- Quasar Distributors (CRD #: 103848)
- Northwestern Mutual Investment Services (CRD #: 2881)
What Should I Do if I Lost Money with Nathan Plumb?
If you were a client of Nathan Plumb and he solicited you for an investment with an outside mutual fund, an investment advisory service, or any other outside business contact our securities attorneys right away. You can call (877) 600-0098 or email info@kurtalawfirm.com.
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