Robert J. Cross of Rome, Georgia, a stockbroker with Allstate Financial Services, LLC, was barred by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any and all capacities after Cross consented to findings that he failed to cooperate with a FINRA investigation into allegations of his business activities. Letter of Acceptance, Waiver and Consent, No. 2014041637201 (Feb. 2, 2016).
According to the AWC, FINRA received a Form U5 amendment from Allstate Financial Services on June 19, 2014, in which Allstate indicated that Cross was named in a customer complaint which alleged fraud, breach of contract, conversion, and negligence in connection with a collateralized bond obligation that the customer purchased.
The AWC indicated that this prompted FINRA to begin investigating numerous allegations of Cross’ conduct, including his financial reporting requirements, whether Cross had accepted customer loans which were unauthorized, and Cross? role in outside business activities and a private securities transaction.
The AWC stated Cross was subsequently sent a request by FINRA, pursuant to Rule 8210, for him to provide on-the-record testimony on November 30, 2015. Approximately one week later, Cross’ counsel reportedly reached out to FINRA?s Department of Enforcement personnel, confirming that Cross was in receipt of FINRA?s request but that Cross refused to partake in the sworn testimony at any point. FINRA found that by failing to appear for the requested testimony, Cross had violated FINRA Rules 8210 and 2010.
Public disclosure records via FINRA’s BrokerCheck reveal that Cross has been subject to two disclosure incidents. On June 2, 2014, Cross was subject to the aforementioned customer complaint, in which the customer received $300,000.00 in damages after alleging fraud, breach of contract, conversion, and negligence.
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