Nicholas Stovall: FINRA Bars Ex-Gradient Advisor

Former Arden Hills, Minnesota financial advisor Nicholas Stovall (CRD# 5581487) was recently sanctioned and barred in connection with allegations that he improperly participated in private securities transactions. Financial Industry Regulatory Authority records show that he was previously registered as a broker with Gradient Securities.

A Letter of Acceptance, Waiver, and Consent (No. 2023079339301) describes FINRA’s disciplinary action against Mr. Stovall. Filed in May 2025, it states that FINRA found he participated in private securities transactions constituting the “the sale of promissory notes issued by entities purportedly engaged in a business that provided financing to construction companies.” He allegedly recommended these investments to six clients, who made a total of $1,101,690 in purchases of the notes. He also allegedly purchased a note himself, for $300,000. The notes’ issuers defaulted later defaulted and ceased operating, according to the Letter. FINRA alleged that he did not disclose his involvement in the purchase or sale of these notes to his member firm, and that he did not seek or obtain its approval to participate in the transactions, all in violation of FINRA Rules 3280 and 2010. As a result of these findings, FINRA barred him from associating with any member firm in any capacity.

Mr. Stovall’s BrokerCheck report discloses a previous sanction by securities regulators in Minnesota. Filed in 2023, it describes findings that he “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 that the recommendations were suitable.” He also allegedly did not report these recommendations to his member firm, in violation of state securities law. As a result of these findings, he was fined $15,000 and issued a three-year bar from registering in the state.

A second disclosure on his BrokerCheck report concerns an investor complaint against him. Filed in 2023, it alleged that as a representative of Gradient Advisors, he solicited unregistered promissory notes not approved by the firm. In 2024 the complaint reached a settlement of $150,000.

According to the Financial Industry Regulatory Authority, Nicholas Stovall holds 14 years of securities industry experience. Most recently based in Arden Hills, Minnesota, he was registered with Gradient Securities from 2009 until 2023. His registration history includes West America Securities Corporation (2013) and Edward Jones (2008-2009). His credentials include the passage of five securities industry examinations: the Operations Professional Exam, or Series 99TO; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; the Financial and Operations Principal Examination, or Series 27; and the the Uniform Combined State Law Examination, or Series 66. He has been barred from acting as a broker. (Information current as of May 9, 2025.)

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