David Allen Gibbs, a stockbroker with J. Alden Associates Inc., was suspended and fined by Financial Industry Regulatory Authority (FINRA) for borrowing $780,000 from a customer without notifying or obtaining written approval from his former employer, MML Investors Services LLC. The loan was formalized through a promissory note requiring monthly payments with interest over 30 years. Although Gibbs has made payments on the loan, FINRA imposed a three-month suspension and a $5,000 fine on October 2, 2024, through a Letter of Acceptance, Waiver, and Consent (AWC)No 2023079817501.
According to the AWC, Gibbs had previously attested to his compliance with firm policies, falsely indicating that he had not borrowed money from any customers other than immediate family members. On August 31, 2023, MML Investors Services LLC discharged Gibbs for violating firm policy regarding loans from customers. The securities broker dealer alleged that Gibbs entered into a private loan transaction with a long-time friend who was also a customer.
Gibbs reportedly explained that the customer, seeking income outside the stock market, offered to provide a loan in exchange for monthly payments. He suggested the loan be secured by property he owned and has made regular payments since.
Public Disclosure shows that on December 3, 2024, a customer filed a complaint against Gibbs and New England Securities, alleging churning involving two Variable Universal Life (VUL) policies. The complaint claims unsuitable recommendations in VUL policies. The customer is seeking $93,560 in damages, and the case remains unresolved. The policies were issued in 2012, with the alleged churning occurring in late 2020.
Gibbs is currently registered with J. Alden Associates Inc. as of November 8, 2023, and Alden Investment Group since February 16, 2024. Previously, he was associated with MML Investors Services LLC from March 25, 2017, to September 14, 2023.
