Andre Paul Young, a registered representative with MetLife Securities, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he improperly borrowed $208,000 in funds from customers in violation of his firm’s policies, and failed to cooperate with a FINRA investigation into allegations of his misconduct. Letter of Acceptance, Waiver, and Consent No. 2012034319701 (Mar. 19, 2015).
According to the AWC, from June 2, 2010 through June 5, 2012, Young reportedly borrowed $208,400 from a married couple, SA and CA, who happened to be his firm’s customers. SA and CA, according to the AWC, issued checks from their brokerage account payable to a bank account owned by Young. The AWC noted that Young had intended to use funds to develop real estate held by his deceased father’s estates, yet applied the funds to attorney fees, traveling expenses, and personal expenses. Young, according to the AWC, never documented the loan agreement in any form of a promissory note or any written form.
The AWC further noted that Young never provided notice to his firm and/or received any approval from his firm to borrow funds from the married couple. The married couple were reportedly reimbursed partially by the firm after Young failed to repay the couple in full.
Additionally, upon investigating the matter pursuant to Rule 8210, FINRA requested that Young provide information and documentation on February 11, 2013. Young reportedly only partially responded to FINRA’s requests that he provide a list of brokerage and bank accounts as well as monthly statements in the accounts containing funds from SA and CA. The AWC stated that the deficient information not provided to FINRA initially was eventually provided, but not until approximately eight months after requested.
FINRA reportedly never received any response to two additional requests which sought clarification of information concerning some of the items under investigation, as well as information concerning Young’s contact with other regulators. Since Young ultimately failed to cooperate with FINRA’s requests, FINRA found Young to be in violation of FINRA Rule 8210 and 2010, barring him as a result.
According to FINRA Rule 3240, individuals associated with a member in any registered capacity are prohibited from borrowing funds form a customer unless the firm’s written procedures permit the borrowing. FINRA registered representatives like Young who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Public disclosure records reveal that that Young has been subject to seven disclosure incidents, five of which involved customer disputes. On September 15, 2008, Young settled a customer dispute for $75,000.00 after the customer requested the return of her principal investments. On October 16, 2008, Young settled a customer dispute for $75,000.00 after a customer alleged that an ARS investment was misrepresented as a liquid investment.
On February 7, 2013, Young settled a customer dispute for $163,400.00 after customers alleged that funds that customers thought were utilized for investment were actually deposited into the bank account in the name of Young. Prior to FINRA’s permanent bar of Young, the State of Connecticut, on November 26, 2014, barred Young for five years in connection with aforementioned borrowing violations concerning the married couple while employed with MetLife.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.