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 engaging in unauthorized activities including borrowing from customers while he was registered with Edward Jones. Department of Enforcement v. Alan Price Disciplinary Proceeding No. 2020066136801 (Aug. 30, 2021).
According to the Complaint, $150,000.00 was borrowed by Price from a customer of Edward Jones named MS who was then 72 years’ old. The Complaint stated that the written procedures used by Edward Jones did not allow for stockbrokers including Price to borrow from customers or loan them money unless an exception applied. Even with an exception, the activities were disallowed unless Edward Jones approved.
Price purportedly never told the securities broker dealer about the customer loan. The regulator contends that Price did not have justification for the arrangement because his situation did not qualify for an exception, and the securities broker dealer did not authorize the loan arrangement. Department of Enforcement alleges that Price violated FINRA Rules 2010 and 3240 for this reason.
The Complaint also alleges that Price was not timely compliant with FINRA’s request for information and documents. In May and September of 2020, Price was allegedly asked by FINRA for information and documents about his involvement with the Edward Jones customer. It was not until May 28, 2021 that Price provided a response to the regulator. Department of Enforcement already initialized the disciplinary action against him by that point.
FINRA additionally alleges that Price failed to disclose his arrangement with MS when he testified about his involvement with the customer. The Complaint states that Price was asked about it in November of 2020. Price’s legal counsel stopped representing him during this proceeding. Price only completed this requirement to testify in June of 2021 when Department of Enforcement pursued the regulatory action against him. Price is accused of violating FINRA Rules 2010 and 8210 for failing to timely cooperate with requests in the investigation.
Price was discharged by Edward Jones on February 27, 2020 founded on concerns of Price’s unauthorized activities with the customer. Since August 12, 2021, Price has been registered with Thurston Springer Financial as a stockbroker. Since September 3, 2020, he has been registered with Thurston Springer Advisors as an investment adviser representative.