As recently reported, former stockbroker and investment adviser Tyler Dean Delahunt (Delahunt, CRD# 4419594), previously affiliated with Merrill Lynch in that brokerage firm’s Atlanta, GA branch office, has been barred from the securities industry by the Financial Industry Regulatory Authority (FINRA). Pursuant to a Letter of Acceptance, Waiver & Consent (AWC) effective January 25, 2021—in which Mr. Delahunt neither admitted nor denied FINRA’s factual findings—the industry bar concerns allegations that Delahunt “solicited clients in a private securities transaction without approval of Merrill Lynch and whether he had accepted loans or other funds from clients without notice to his firm … in violation of FINRA Rules 8210 and 2010.”

Tyler Delahunt was a longtime financial advisor first registered with FINRA in August 2001. Delahunt was previously affiliated with Morgan Keegan & Company, Raymond James & Associates, and PFS Investments. From October 2016 through his termination from employment in August 2020, he was affiliated with Merrill Lynch. In connection with FINRA’s investigation into whether Mr. Delahunt engaged in private securities transactions without Merrill Lynch’s approval—activity in the financial services industry typically referred to as “selling away”—FINRA issued him a “request for information and documents” pursuant to Rule 8210.

Delahunt’s purported refusal to provide the requested information and documents constituted a violation of FINRA Rule 8210, in addition to Rule 2010 which requires industry members to “conduct business with high standards of commercial honor” and “maintain just and equitable principles of trade.” As disclosed by FINRA, its investigation into whether Mr. Delahunt was engaging in impermissible “selling away” activity for certain private securities commenced around August 31, 2020, when his former employer, Merrill Lynch, filed a Form U5 reporting his alleged misconduct “involving the solicitation of clients in an outside investment and participating in financial arrangements with clients.”

Under applicable securities laws and FINRA Rules, brokerage firms like Merrill Lynch have a duty to ensure that their registered representatives are adequately supervised. In this regard, brokerage firms must take reasonable steps to ensure that their brokers follow applicable securities rules and regulations, as well as adhere to the firm’s internal policies. In those instances when a brokerage firm fails to adequately supervise its brokers—including instances where a broker engages in impermissible selling away—the brokerage firm may be held liable for losses suffered by investors.

Investors who have suffered losses with Tyler Delahunt, or another financial advisor, may contact our office by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost, no-obligation and confidential consultation to learn more about their legal rights. The attorneys at Giarrusso Law Group LLC have extensive experience with handling all manner of claims on behalf of investors who have been victimized by securities fraud or related misconduct.