Broker Consents to Fines to Resolve Allegations of Borrowing Money from Customer without Firm ApprovalTuesday, August 6, 2019
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) against David Wilson Fleming, formerly registered with Deutsche Bank Securities Inc. (DBS) in Greenwich, Connecticut.
According to his FINRA BrokerCheck report, Fleming was associated with DBS from November 2010 to November 2014. FINRA alleges that during this time, he accepted three separate payments from a customer, borrowing a total of $35,000, without providing prior approval to DBS. His member firm allowed customer loans based on a personal relationship but only if prior notice and written approval was obtained from the firm.
Since Fleming did not obtain prior approval, FINRA asserts that he violated FINRA Rule 3240 and 2010. By signing the AWC, Fleming consented to a three-month suspension in all capacities and a $5,000 fine.
Although Fleming is not currently associated with a member firm, he was associated with two firms after leaving DBS. From November 2014 to July 2015, Fleming was associated with Sterne, Agee & Leach, Inc. in New York, New York and Stifel, Nicolaus & Company, Incorporated in White Plains, New York from July 2015 to August 2017. His FINRA BrokerCheck report also reveals that Fleming was named in a customer dispute that alleged unsuitability, misrepresentations of risk, materiality of omissions, misrepresentations, breach of fiduciary duty, and negligent supervision. The ordered Fleming to pay the claimants over $750,000.
If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. Did you invest money with your broker and you suspect wrongdoing? If so, you may be able to recover from your broker or his or her brokerage firm. Since 1998, we have been representing victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free, no obligation consultation.