David Wilson Fleming Jr. of White Plains New York a stockbroker formerly registered with Stifel Nicolaus Company Incorporated has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Fleming inappropriately borrowed money from a Stifel Nicolaus customer during the time he was associated with the firm. Letter of Acceptance Waiver and Consent No. 2017054847101 (July 18, 2019).
According to the AWC, Fleming serviced the account of a customer who invested through Stifel Nicolaus between 2011 and August of 2017. During this time, Fleming was obligated under the firm’s policies to report if the stockbroker entered into any customer loan arrangements. Nevertheless, at least $35,000.00 had been borrowed by Fleming from the customer without Fleming having notified Stifel Nicolaus or obtained the firm’s authorization. The AWC stated that Fleming failed to satisfy the firm’s requirements which mandated that he notify the firm and secure its approval of the customer loans. Consequently, FINRA found Fleming’s conduct violative of FINRA Rules 2010 and 34240.
FINRA Public Disclosure reveals that Fleming has been identified in two customer initiated investment related disputes pertaining to allegations of his violative conduct while employed with Everen Securities Inc., Stifel Nicolaus Company, Sterne Agee Leach Inc. and Deutsche Bank Securities Inc. In particular, on June 22, 1999, a customer filed an investment related complaint involving Fleming’s conduct where the customer sought damages estimated to exceed $5,000.00 supported by accusations that transactions effected in the customer’s account failed to be suitable for the customer; and trades had been executed in the customer’s account in an excessive manner.
Thereafter, a customer filed an investment related arbitration claim regarding Fleming’s activities in which the customer requested $606,000.00 in damages founded on allegations that transactions had been placed in violation of FINRA rules; fiduciary duties were violated; and misrepresentations and omissions had been made to the customer concerning the terms and conditions of the equities transactions placed in the customer’s accounts by Fleming when he was employed by Sterne Agee Leech Inc., Deutsche Bank Securities Inc. and Stifel Nicolaus Company. FINRA Arbitration No. 17-01369 (May 30, 2017). Claimants were awarded $728,000.
Fleming had been discharged by Stifel Nicolaus on July 5, 2017 based upon accusations that he entered into unauthorized loan arrangements with a firm customer.
