Nicholas Stovall Barred By FINRA, Involved In Gradient Advisors Client Dispute

FINRA barred securities broker Nicholas Edward Stovall [CRD: 5581487, Arden Hills, Minnesota] and an investor complained about him, according to publicly available disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Stovall worked for Gradient Securities LLC from July 14, 2009, to July 21, 2023. Keep reading to learn more about the disclosures involving this broker and what actions investors can take.

FINRA Sanctioned Stovall For Participating In Unauthorized Private Securities Transactions

Specifically, on May 8, 2025, FINRA barred Nicholas Stovall. FINRA alleged that Stovall engaged in private securities transactions without notifying his employing firm, Gradient Securities LLC.

Between March 2018 and August 2021, while working for Gradient Securities LLC in Arden Hills, Minnesota, Stovall took part in 11 separate private securities transactions totaling $1,401,690. He did not notify Gradient Securities or seek the firm’s approval before proceeding with these investments. These transactions involved promissory notes issued by businesses that claimed to provide financing for construction companies.

Stovall recommended these notes to six investors, who collectively invested $1,101,690. Additionally, he personally invested $300,000 in the same notes. His role in these transactions included informing investors about the promissory notes, outlining their terms, introducing investors to the issuing entities, assisting with investment paperwork, and helping transfer funds to the issuers.

The issuers of the notes defaulted in October 2022 and subsequently ceased operations. In December 2024, two of Stovall’s clients settled a related arbitration. It was also noted that in, state regulators took action against the issuers for allegedly running a scheme, though Stovall was not named in those actions.

FINRA determined that Stovall’s failure to notify his firm about the transactions constituted violations of FINRA Rules 3280 and 2010. Rule 3280 requires registered representatives to provide written notice to their firms before participating in any securities transactions outside the scope of their employment.

As a result of these violations, FINRA imposed a bar on Stovall, prohibiting him from associating with any FINRA member firm in any capacity. The sanction became effective upon FINRA’s acceptance of Letter of Acceptance, Waiver, and Consent (AWC) # 202307933930 on May 8, 2025.

Nicholas Stovall Sanctioned By Minnesota Regulator For Unsuitable Recommendations

Evidently, Minnesota issued Case: 80970 on February 5, 2025, sanctioning Nicholas Stovall. Allegedly, Stovall recommended promissory notes issued by Premier Global Corporation (PGC), Premier Factoring LLC (PF-LLC), and/or Premier Factoring Group LLC (PFG-LLC) to six of his Minnesota investment advisory clients between 2018 and 2021 without reasonable grounds to believe the recommendations were suitable.

These Minnesota investors then purchased over $1,100,100.00 in promissory notes from PFG-LLC or PF-LLC, PGC from 2018 to 2021, incurring losses. Stovall failed to report these activities and the Premier Transactions to his investment firm in violation of the Minnesota Securities Act. As a result, Stovall was barred in all capacities for three years beginning July 20, 2023, ordered to cease and desist, and fined $15,000.00.

Gradient Advisors LLC Investor Accused Stovall Of Recommending Investments In Default

Also, a Gradient Advisors LLC client filed FINRA Arbitration No. 23-01837 about Nicholas Stovall. Namely, the client alleged that Stovall recommended investments which defaulted. Because of this, the client allegedly incurred damages through investing in promissory notes. Because of this, on December 23, 2024, Gradient Advisors LLC settled this matter by paying the client $150,000.00 in damages.

Nicholas Stovall Disclosed Misrepresentation Allegations By Gradient Advisors LLC Client

Additionally, a client of Gradient Advisors LLC contested Stovall’s sales practices, according to a complaint dated March 12, 2018. Allegedly, Stovall made misrepresentations relating to fixed annuities. For this reason, the client sought compensation or other damages from Gradient Advisors LLC or Stovall in this matter. However, the firm denied this complaint.

Were You Impacted By Securities Broker / Financial Advisor Nicholas Stovall?

Did you experience losses because of Nicholas Stovall? You can reach out to Soreide Law Group online or at (888) 760-6552 and consult with a securities attorney concerning a potential recovery. Soreide Law Group has years of experience recovering losses for investors throughout the country. The firm also works on a contingency fee basis and advances all costs. Stovall and brokerage firms Stovall worked for deny allegations of sales practice violations.