Brant Andrew Ray, of Southhaven, Mississippi, a stockbroker formerly registered with Commonwealth Financial Network, has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected an unapproved loan transaction and lied about it when questioned by his firm and FINRA staff. Department of Enforcement v. Brant Andrew Ray, Offer of Settlement in Disciplinary Proceeding No. 2015047096601.
According to the Order, $50,000.00 of customer CT’s funds were transferred to Ray according to a documented loan arrangement between Ray and the customer, wherein Ray was required to make $9,167.00 in monthly payments with one percent interest. The Order revealed; however, that the firm did not permit those types of loan arrangements. Consequently, Ray’s unapproved loan transaction was considered conduct violative of FINRA Rules 2010 and 3240.
Ray’s registration with Commonwealth Financial Network was reportedly terminated following his loan arrangement with customer. Evidently, when he later became employed with Cetera Financial Advisors, he falsely confirmed that he understood and conformed to the firm’s restrictions on loan arrangements with customers. FINRA found that Ray’s improper conduct was violative of FINRA Rules 2010.
Moreover, Ray purportedly lied to FINRA when it launched an investigation into his business activities. Particularly, he stated to FINRA that he spoke with a Commonwealth manager regarding the loan, claiming that the manager approved of his loan because of his anticipated termination from the company. FINRA confirmed that Ray never discussed the loan with his Commonwealth manager. FINRA found that Ray’s false testimony was violative of FINRA Rules 2010, 8210 and 3240.
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