Brant Andrew Ray, of Southaven, Mississippi, a stockbroker formerly registered with Commonwealth Financial Network, has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Ray engaged in an unauthorized borrowing arrangement with a customer of the firm. Department of Enforcement v. Brant Andrew Ray, No. 2015047096601 (May 1, 2017).
According to the Complaint, on March 25, 2014, an elderly customer lent $50,000.00 to Ray via a written loan arrangement, where the customer was to be repaid at least $9,167.00 a month with one percent annual interest. The Complaint stated that Ray’s borrowing arrangement was prohibited by Commonwealth Financial Network, and that the firm was never notified concerning his activities. The Complaint alleged that Ray’s conduct was violative of FINRA Rule 2010 and 3240.
Apparently, Ray’s registration with Commonwealth Financial Network was terminated on April 16, 2014. After becoming associated with Cetera Financial Networks, LLC, Ray purportedly claimed in the firm’s annual compliance questionnaire that he understood that the firm’s policies prohibited representatives such as himself from borrowing from customers and that he complied in this regard; however, Ray had a lending arrangement with the aforementioned customer in violation of his firm’s policies. FINRA Department of Enforcement alleged that Ray falsely represented his compliance with the policy; conduct violative of FINRA Rule 2010.
Ray was also alleged to have falsely represented his activities when questioned by FINRA. Particularly, FINRA personnel reportedly received a letter from Ray concerning his borrowing arrangement, in which he stated to FINRA that he informed his supervisor about the loan arrangement and claimed the supervisor did not object. FINRA alleged that Ray falsified his testimony, in that his supervisor did not speak with Ray about the loan or approve it. FINRA Department of Enforcement alleged that Ray’s conduct of falsifying testimony was conduct violative of FINRA Rule 2010 and 8210.
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