Keith Holcomb of Pawtucket Rhode Island a stockbroker formerly registered with MML Investors Services LLC has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Holcomb borrowed customer funds in violation of MML company policy. Letter of Acceptance Waiver and Consent No. 2019061870301 (Mar. 29, 2021).
According to the AWC, in March of 2019, FINRA received word from MML Investors Services that Holcomb was the subject of a customer initiated investment related complaint in which Holcomb was accused of “borrowing” the customer’s funds without having repaid them and without establishing any repayment schedule with the customer.
The AWC stated that during the time that Holcomb was associated with MML Investors Services, he was prohibited from borrowing from customers who were not certain family members. Even in situations where borrowing might be permissible, the stockbroker would still be required to notify the securities broker dealer about the loan and procure its authorization.
The AWC stated that Holcomb was the broker of record for a non-family member customer in 2016. Holcomb learned that the customer had sustained severe health problems and was financially insecure. This did not stop Holcomb from borrowing $31,240.00 from that customer between November of 2016 and June of 2017. FINRA indicated that the customer has not been repaid in full.
MML Investors Services was never notified about Holcomb’s loan and it did not authorize his borrowing arrangement. Holcomb violated FINRA Rules 2010 and 3240 in this respect.
FINRA Public Disclosure reveals that on February 19, 2019, a customer filed an investment related complaint involving Holcomb’s conduct in which they requested $500,000.00 in damages supported by accusations that Holcomb requested a loan from them and then withdrew almost all of their account over 18 months to obtain the funds. The complaint alleges that Holcomb led the customer to be destitute.
Holcomb’s registration with MML Investors Services was terminated as of June 22, 2017. Between September 26, 2017 and May 6, 2019, he was registered with Cambridge Investment Research Inc.
