Jesse Brett Butler, of Evansville, Indiana, a stockbroker registered with Allstate Financial Services LLC, has been fined $5,000.00 and suspended for four months by Financial Industry Regulatory Authority (FINRA) because Butler borrowed money from customers while associated with Allstate Financial Services. Letter of Acceptance, Waiver, and Consent No. 2022077235401 (October 23, 2024). The suspension took place from November 4, 2024, to March 3, 2025.
According to FINRA, Butler borrowed $1,175,000.00 from five of his customers between 2016 and 2020 without disclosing the loans to, or obtaining approval from, Allstate Financial Services LLC. One of these loans was from immediate family members, but it was still prohibited under the securities broker dealer’s policies because Butler did not disclose it or obtain the required approval.
Additionally, Butler falsely stated on five annual compliance questionnaires that he had not borrowed money from any customers. FINRA found that Butler’s conduct violated FINRA Rule 3240, which prohibits registered representatives from borrowing money from customers unless permitted by firm policies and approved in writing. Violating Rule 3240 is also considered a violation of FINRA Rule 2010.
FINRA Public Disclosure shows that Butler was referenced in four customer initiated investment related disputes concerning Butler’s conduct while associated with securities broker dealers. On December 2, 2005, a customer filed an investment related complaint involving Butler’s conduct in which the customer requested $20,000.00 in damages based upon allegations that Butler recommended investments which defaulted when Butler was associated with ONB Investment Services. The complaint was denied.
Butler was also referenced in a customer initiated investment related complaint filed on March 17, 2008, in which the customer requested $8,387.00 in damages based upon allegations that Butler made misrepresentations of material fact in connection with the sale of variable annuities. The complaint was denied on April 1, 2008.
On February 18, 2015, a different customer initiated investment related civil action involving Butler’s conduct was settled for $120,000.00 in damages based upon allegations that Butler withdrew customer funds without authorization and committed forgery during the time that Butler was associated with Allstate Financial Services LLC. Civil Action No. 87D02-1211-ES-000151.
On June 26, 2015, another customer filed an investment related complaint involving Butler’s conduct in which the customer requested $208,175.00 in damages based upon allegations that Butler made misrepresentations of material fact in connection with the sale of variable annuities when Butler was associated with Allstate Financial Services LLC. The complaint was closed with no action on July 6, 2015.
Butler was associated with Pruco Securities LLC in Evansville, Indiana from December 19, 2022, to October 24, 2024, and was associated with Allstate Financial Services LLC in Evansville, Indiana from May 9, 2005, to December 20, 2022.
