Ferrell Lee Rollins Jr of Rocky Mount North Carolina a stockbroker formerly employed by Capital Investment Group Inc. has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Rollins borrowed funds from an elderly Capital Investment Group customer. Letter of Acceptance Waiver and Consent No. 2019063901501 (Sept. 14, 2020).
According to the AWC, while Rollins was associated with Capital Investment Group, he was prohibited from borrowing from customers of the securities broker dealer. There were no exceptions to this policy against borrowing. FINRA stated that in September of 2016, $70,000.00 had been loaned to Rollins from an 89-year-old customer. The loan called for the funds to be repaid to the customer in five years along with interest. This loan was not documented by Rollins. There was no written instrument concerning any of the repayment terms.
The AWC stated that as soon as the customer died, Rollins stopped making payments. The decedent’s representative contacted Capital Investment Group to complain after finding that there was a loan arrangement between the decedent and Rollins.
FINRA also mentioned that three annual compliance questionnaires had been administered to Rollins by Capital Investment Group. In submitting those questionnaires, Rollins falsely represented that he did not solicit or accept any loan from a customer. Rollins’ activities were violative of firm policy and FINRA Rules 2010 and 3240.
FINRA Public Disclosure also confirms that Rollins is the subject of a customer initiated investment related written complaint in which the customer sought $73,000.00 in damages based upon allegations that the Capital Investment Group customer was inappropriately advised to hold equities positions which led them to decline in value.