Benjamin Frank Bourgeois Jr. (also known as Ben Bourgeois) of Metairie Louisiana a stockbroker formerly registered with Commonwealth Financial Network has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on allegations that Bourgeois failed to cooperate with a FINRA investigation into accusations that (1) Bourgeois converted funds from a customer (2) Bourgeois defrauded a customer and (3) Bourgeois entered into an unapproved customer loan arrangement. Letter of Acceptance, Waiver and Consent No. 20190621621-01 (May 28, 2019).
According to the AWC, FINRA’s investigation into Bourgeois stemmed from Bourgeois’ termination from Commonwealth Financial Network. Apparently, Commonwealth Financial Network notified FINRA that Bourgeois was discharged on April 1, 2019 supported by allegations that Bourgeois borrowed a customer’s funds in contravention of both the policies of the firm as well as FINRA Rule 3240. The AWC stated that Commonwealth Financial Network, on April 5, 2019, informed FINRA that Bourgeois was additionally subject of civil litigation – a customer claimed that Bourgeois converted her funds and that he committed fraud.
On April 9, 2019, a request was sent to Bourgeois by FINRA under Rule 8210 which called upon Bourgeois to produce information and documentation in FINRA’s investigation. The AWC stated that Bourgeois was required to comply by April 23, 2019; however, Bourgeois declined to respond. The AWC stated that another request had been sent to Bourgeois from FINRA on April 24, 2019 which went unanswered.
Evidently, on May 15, 2019, counsel for Bourgeois spoke with FINRA personnel to indicate that although Bourgeois received FINRA’ instructions to furnish the documentation and information, Bourgeois would at no point cooperate. FINRA concluded that Bourgeois’ hinderance of the investigation in this respect was violative of FINRA Rules 2010 and 8210. This resulted in Bourgeois being barred by FINRA from the securities industry.
FINRA Public Disclosure confirms that Bourgeois is referenced in two customer initiated investment related disputes pertaining to accusations of his customers during the time that he was associated with securities broker dealers including Invest Financial Corporation, Sisung Securities Corporation and FBT Investments Inc. Specifically, on January 11, 2011, a customer filed an investment related complaint regarding Bourgeois’ conduct in which the customer requested $150,000.00 in damages based upon allegations that misrepresentations had been made by Bourgeois concerning the terms and conditions of an over-the-counter equity sold to the customer; and Bourgeois executed equity transactions in the customer’s account that were not appropriate for the customer given the customer’s investment experience, financial situation and age.
Another customer initiated investment arbitration claim involving Bourgeois’ conduct has been resolved for $9,000.00 in damages founded on accusations that Bourgeois made omissions to the customer concerning the risks, principal protections and sales charges pertaining to a variable annuity sold to the customer, and the variable annuity Bourgeois sold was unsuitable causing the customer to incur losses. FINRA Arbitration No. 02-06341 (Nov. 2, 2002). Further, a customer filed an investment related civil action in the United States District Court for the Eastern District of Louisiana that pertained to Bourgeois’ activities where the customer sought $519,000.00 in damages supported by allegations that in 2016, while Bourgeois was associated with Commonwealth Financial Network, the customer was defrauded; omissions were made concerning the terms or risks of investments purchased by the customer; and the customer’s funds, which were meant to be invested, were instead stolen by Bourgeois. Civil Action No. 2:19-cv-08104 (Apr. 5, 2019).
