Written by The White Law Group• October 15, 2021• 4:54 pm• Blog, Current Investigations

Edgar Kleydman, Former AXA Advisor, Barred from Securities Industry

FINRA Bars Edgar Kleydman after Allegations of “Selling Away”

According to the Financial Industry Regulatory Authority (FINRA), on October 14, 2021 the regulator has barred financial advisor Edgar Kleydman (CRD #2727571) from associating with any FINRA member at any time.

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In connection with FINRA’s purported investigation into whether Kleydman engaged in private securities transactions without providing written notice to his former member firm AXA Advisors (now known as Equitable Advisors, LLC), FINRA staff issued Kleydman a request for on-the-record testimony.

Kleydman reportedly refused to appear for on-the-record testimony, in violation of FINRA Rules, according to a Letter of Acceptance, Waiver and Consent. This matter purportedly originates from an AXA customer’s complaint to FINRA alleging that Kleydman had engaged in private securities transactions without providing written notice to AXA.

When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” Some brokers, looking to supplement their income, will go outside the traditional market, trying to find other products to push.

If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.

For more information on “Selling Away”, please see:

Financial Advisor Fraud | Unapproved Securities “Selling Away”

According to his broker profile, Kleydman reportedly has 3 customer complaints on his record since 2017. He was reportedly associated with the following firms during his career in the securities industry, among others:

12/19/2019 – 03/16/2020, MML INVESTORS SERVICES, LLC (CRD#:10409), BROOKLYN, NY
12/02/2015 – 12/10/2019, AXA ADVISORS, LLC (CRD#:6627), BROOKLYN, NY
10/01/2012 – 12/08/2015, J.P. MORGAN SECURITIES LLC (CRD#:79), BROOKLYN, NY
09/01/2011 – 10/01/2012, CHASE INVESTMENT SERVICES CORP. (CRD#:25574), BROOKLYN, NY

Recovery of Investment Losses

The White Law Group is investigating potential securities fraud claims involving Edgar Kleydman and the liability his employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unauthorized transactions or excessive trades, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in FINRA arbitration claims in all 50 states including New York. Our attorneys have recovered millions of dollars from many brokerage firms in the past.