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Stephen Polak Terminated by Avantax Investment Services Following Allegations of Outside Business

Nov 18, 2022 Outside Business Activities

Stephen Polak (CRD #: 5228523) has been fired by Avantax Investment Services following allegations that he failed to disclose outside business activities. This is according to his BrokerCheck record, accessed on November 18, 2022. Investors who have worked with Stephen Polak should review their account statements and reach out to a securities lawyer if they have concerns.

Avantax Investment Services alleged that Stephen Polak engaged in outside business in spite of the fact that he had 1. Completed annual training provided by the firm that identified his responsibility to disclose outside business, and 2. Expressed affirmations to the firm that he understood his obligation to disclose outside businesses.  

FINRA Rule 3270 and Outside Business

The outside business of registered brokers must be reviewed and approved by the brokerage firm. “Outside business” refers to any business that the broker engages in outside of the scope of their regular business with the firm. Firms must review the outside business to determine if it presents a potential conflict of interest. If the firm approves the outside business, the business should appear in the broker’s detailed BrokerCheck report.

Stephen Polak Outside Businesses

The following outside businesses appear on Stephen Polak’s detailed BrokerCheck report:

  • Avantax Insurance Agency: Sales of Equity Indexed Annuities
  • Rental Property Owner
  • Franklin Lodge: Treasurer
  • Rico LLC
  • Tabs, Inc: Bookkeeping and tax preparation.
  • Trinity Motors: Accounting as well as federal and state filings.

Hoes Does Outside Business Affect Investors?

Outside business is a concern for regulators because brokerage firms cannot supervise outside businesses. Since brokers are in a position of trust, regulators recognize that brokers are in a position to solicit clients for investments or other financial participation in an outside business. Firms are required to monitor their broker’s communications with investors to ensure they do not solicit customers for investments in undisclosed outside businesses.

Regulatory Action in Vermont

Vermont fined Stephen Polak $60,000 following allegations regarding his outside business. The State also suspended Mr. Polak for 60 days, starting September 15, 2022, and ending November 14, 2022.

Background Information

Stephen Polak has passed the following exams:

  • Series 65 Uniform Investment Adviser Law Examination
  • Series 63 Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 6 Investment Company Products/Variable Contracts Representative Examination

He has worked with the following firms:

  • Avantax Investment Services (CRD #: 13686)
  • Nationwide Securities (CRD #: 11173)
  • 1717 Capital Management Company (CRD #: 4082)
  • NYLife Securities (CRD #: 5167)

Kurta Law Can Help

If you have concerns about Stephen Polak’s role in any other outside business, contact a securities attorney today: (877) 600-0098 or info@kurtalawfirm.com. We can help investors recover any losses they suffered due to outside business rule violations.

Kurta Law has decades of experience helping investors recover. Our attorneys fight for fair settlements and FINRA awards. Read our client testimonials here and feel free to reach out with any questions.