Alan Robert Price of Frankfort Indiana a stockbroker formerly registered with Edward Jones has been charged by Financial Industry Regulatory Authority (“FINRA”) Department of Enforcement with failing to cooperate with FINRA’s requests during the period that he was under investigation for borrowing funds form a customer. Department of Enforcement v. Alan Price Disciplinary Proceeding No. 2020066136801 (Apr. 1, 2021).
According to the Complaint, FINRA was made aware from Edward Jones on March 25, 2020 that Price had been discharged from the securities broker dealer for entering into a customer loan arrangement. An investigation ensued by April 2020.
The Complaint alleged that on May 6, 2020, Price was sent a request from FINRA which required him to confirm whether he ever accepted funds from a certain Edward Jones customer either by loan or gift. He was also asked whether he made any attempt to notify Edward Jones and obtain its permission for purposes of accepting funds from other customers.
As part of the investigation, the regulator reportedly sought documentation from Price referencing the loan. This included the date of the transaction, the amount of funds involved, money that was still owed to the customer, and the rationale for the loans. Price was expected to provide any agreements or contracts to the regulator in regard to the loan.
The Complaint alleges that Price failed to comply with the regulator’s requests. Price allegedly told FINRA that it lacked any authority to investigate those activities that resulted in Edward Jones’ termination of him, and that it lacked authority to investigate the circumstances and nature of the loan.
Price was also asked by FINRA to testify in response to the accusations of his borrowing arrangements. The stockbroker showed up to testify but declined to confirm whether he borrowed any money from an Edward Jones customer. Price subsequently confirmed for FINRA on January 12, 2021 that he would not answer FINRA’s questions under oath.
Department of Enforcement alleges that Price violated FINRA Rules 2010 and 8210 by failing to provide testimony and by failing to provide information and documents in the investigation.
Price was registered with Edward Jones between January 26, 2007 and March 25, 2020.
