Jesse Brett Butler, also known as Brett Butler or J. Brett Butler, a stockbroker from Evansville, Indiana, was sanctioned by Financial Industry Regulatory Authority (FINRA) for borrowing violations while registered with Allstate Financial Services LLC. FINRA issued a Letter of Acceptance, Waiver, and Consent (AWC) on October 23, 2024, after determining that Butler borrowed a total of $1,175,000 from five customers between 2016 and 2020 without disclosing the loans to or obtaining approval from his firm. Letter of Acceptance, Waiver, and Consent (AWC) No. 2022077235401.
FINRA found that Butler violated FINRA Rules 3240 and 2010. Allstate Financial Services’ policies generally prohibited borrowing from customers, including family members, unless prior approval was obtained. Although one loan involved immediate family members, Butler still failed to follow firm procedures. Additionally, Butler falsely stated on five annual firm compliance questionnaires that he had not borrowed funds from customers.
The matter was resolved on October 23, 2024, through the AWC agreement. As part of the sanctions, FINRA imposed a $5,000 fine and suspended Butler from associating with any FINRA member for four months, effective November 4, 2024, through March 3, 2025.
Butler’s most recent employment was with Pruco Securities LLC, where he was registered from December 19, 2022, until October 24, 2024. Prior to this, he worked with Allstate Financial Services LLC from May 9, 2005, to December 20, 2022.
