Lorene Fairbanks (also known as Lori Miller) of Canfield Ohio a stockbroker formerly employed by Ameriprise Financial Services has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that (1) Fairbanks entered into an unapproved customer loan arrangement in which Fairbanks borrowed $75,000.00 from a customer without approval from Ameriprise Financial Services and (2) Fairbanks concealed communications from the firm that she received from a customer about her problematic trading in the customer’s account. Letter of Acceptance Waiver and Consent No. 2017054579101 (Jan. 24, 2018).
According to the AWC, Fairbanks borrowed $75,000.00 from customer, SC, in relation to a home purchase. Evidently, there was no documentation pertaining to the loan terms, collateral, interest rate and repayment of $75,000.00 to the customer. Critically, the firm actually disallowed stockbrokers including Fairbanks from taking loans from customers. Evidently, the loan from SC was never made known by Fairbanks to the firm. The AWC stated that Fairbanks’ unauthorized borrowing arrangement was violative of FINRA Rule 3240.
Moreover, the AWC stated that the customer voiced complaints to Fairbanks in regard to the trades placed in the customer’s account, and discussed the sale of the customer’s securities. Apparently, those communications were violative of the firm’s policies. The AWC revealed that Fairbanks failed to preserve the communications for the firm’s record keeping purposes. Consequently, FINRA found Fairbanks’ activities to be violative of FINRA Rules 2010.
FINRA Public Disclosure reveals that Fairbanks has been identified in eight customer initiated investment related disputes containing allegations of her violative conduct while employed with Ameriprise Financial Services Inc., Citigroup Global Markets Inc. and Merrill Lynch Pierce Fenner Smith Incorporated. Specifically, a customer initiated investment related arbitration claim regarding Fairbanks’ conduct was settled for $72,000.00 in damages supported by accusations that through Fairbanks’ association with Merrill Lynch Pierce Fenner Smith Incorporated, misrepresentations had been made to the customer concerning options investments; unauthorized trades were effected in the customer’s account; and the customer was provided bad advice. FINRA Arbitration No. 12-03422 (Sept. 24, 2013).
Thereafter, a customer initiated investment related arbitration claim regarding Fairbanks’ activities was resolved for $65,000.00 in damages founded on allegations of misrepresentations being made concerning stocks sold to the customer; omissions of investment related information; and unauthorized and excessive trading of equities in the customer’s investment portfolio which caused the customer losses. Civil Action No. 13-03693 (Dec. 19, 2014). Fairbanks is also the subject of a customer initiated investment related arbitration claim which was settled for $15,000.00 in damages based upon accusations that the customer’s account was negligently handled; fiduciary duties were violated; contractual obligations had been breached; false and misleading statements had been made to the customer; and the customer’s investment portfolio was churned. FINRA Arbitration No. 15-00713 (Dec. 17, 2015).
Moreover, on October 27, 2017, a customer initiated investment related complaint regarding Fairbanks’ conduct was resolved for $125,000.00 in damages supported by allegations that while Fairbanks was associated with Ameriprise Financial Services Inc., misrepresentations had been made to the customer concerning the risks of trading options in the customer’s account; and the customer’s account was over-concentrated in speculative investments. Furthermore, a customer initiated investment related arbitration claim involving Fairbanks’ activities was settled for $50,000.00 in damages founded on accusations that the customer was provided bad advice on options trades, and false or misleading information had been provided to the customer. FINRA Arbitration No. 17-02920 (Nov. 8, 2018).
Fairbanks was terminated by Ameriprise Financial Services after being subject of the firm’s internal investigation and a suspension in reference to Fairbanks’ unauthorized receipt of a customer loan and Fairbanks’ unpermitted communications with a customer.
