Corey Lee Mireau of Eden Prairie Minnesota a stockbroker formerly registered with Ameriprise Financial Services Inc. has been fined $15,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that (1) Mireau engaged in unapproved outside business activities (2) Mireau executed private securities transactions without disclosing them to the firm (3) Mireau entered into unapproved customer loan arrangements and (4) Mireau lied to the firm about his activities. Letter of Acceptance Waiver and Consent No. 2017055910301 (Apr. 12, 2017).
According to the AWC, $150,000.00 in funds had been lent to Mireau from a customer, KR, so that Mireau could make an investment in VDI – a cigarette business. Apparently, Mireau agreed to repay the customer the principal with ten percent interest in a year. The customer was also promised a ten percent share of any profits Mireau generated from the VDI investment. The AWC stated that the loan was not repaid by Mireau. This loan was reportedly prohibited by the firm because of Mireau’s failure to provide the firm with written notification. FINRA found Mireau’s unapproved customer loan arrangement violative of FINRA Rules 2010 and 3240.
The AWC additionally stated that Mireau utilized most of the $150,000.00 provided from KR to purchase VDI shares. Yet, Ameriprise was never notified by Mireau about the VDI investment, and Mireau had not received any permission from the firm to effect the transaction. Evidently, the written supervisory procedures utilized by the firm restricted stockbrokers from engaging in private securities transaction unless both the stockbroker’s role in the transaction had been disclosed to the firm and the stockbrokers’ request to effect the private securities transaction had been authorized by the firm. FINRA found Mireau’s private securities transaction violative of FINRA Rule 2010 and NASD Rule 3040.
Moreover, the AWC stated that the written supervisory procedures utilized by Ameriprise forbade stockbrokers from engaging in outside business activities unless the activities were made known to the firm and approved of beforehand. Apparently, Mireau was hired by a customer of the firm, RS, to be RS’ business consultant in return for compensation. The AWC stated that Mireau’s arrangement with RS was not made known by Mireau to the firm. Consequently, FINRA found Mireau’s outside business activities violative of FINRA Rules 2010 and 3270.
According to the AWC, Mireau was also less than forthcoming in completing compliance questionnaires administered by the firm. Apparently, as a stockbroker, Mireau was required to follow the firm’s rules mandating disclosure of outside business activities and private securities transactions. However, on the questionnaires administered to Mireau regarding his activities, he claimed to have informed the firm about any outside business activities. Mireau also reportedly claimed that there were no securities transactions effected by him away from the firm without the firm’s authorization. FINRA Round Mireau’s conduct in this regard to be violative of FINRA Rules 2010.
FINRA Public Disclosure reveals that Mireau is referenced in two customer initiated investment related disputes pertaining to allegations of his violative conduct during the time that he was associated with Ameriprise Financial Services Inc. In particular, a customer filed an investment related complaint concerning Mireau’s activities where the customer sought damages estimated to exceed $5,000.00 supported by accusations that while Mireau was associated with Ameriprise Financial Services Inc., omissions had been made concerning the death benefit features on a variable universal life insurance policy that had been purchased by the customer.
Thereafter, a customer initiated investment related complaint regarding Mireau’s conduct was settled for $80,000.00 in damages founded on allegations that the customer had provided Mireau funds to invest in VDI securities when those investments were not suitable for the customer given the customer’s objectives for investing and tolerance for risk.
Mireau was terminated by Ameriprise Financial Services Inc. on September 15, 2017, which was around the time he had been investigated by the firm for borrowing customer funds without permission and engaging in outside business activities without having disclosed them to the firm; conduct violative of the firm’s policies.
