Patrick Neal Foley of Ontario California a stockbroker formerly employed by Merrill Lynch Pierce Fenner Smith Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Foley failed to cooperate with FINRA during an investigation into accusations of Foley taking possession of funds from a vulnerable customer who held accounts at Merrill Lynch. Letter of Acceptance Waiver and Consent No. 2018057382001 (June 14, 2019).
According to the AWC, an investigation had been commenced by FINRA concerning the allegations referenced by Merrill Lynch in its disclosure of Foley’s termination from the firm. In particular, FINRA was made aware from Merrill Lynch that Foley had been discharged by the firm on January 31, 2018 founded on accusations that Foley entered into an unapproved loan arrangement with an elderly customer.
The AWC stated that Foley was instructed under FINRA Rule 2010 and 8210 to provide the regulator with recorded testimony concerning Foley’s potential unauthorized transaction. Evidently, Foley was required under Rule 8210 to appear on May 8, 2019 to testify; and the letter he received from FINRA stated that he could be sanctioned by FINRA for any lack of cooperation in this regard.
FINRA revealed that on May 3, 2019, it received a phone call from the legal counsel for Foley. Apparently, counsel for Foley relayed that no testimony would be provided by Foley in the investigation. Three days later, FINRA received additional confirmation that Foley was not going to make any appearance for testimony. Accordingly, the day for Foley’s testimony came and he never showed up. FINRA was ultimately made aware from Foley himself that he would not cooperate in the investigation. Consequently, FINRA found Foley’s conduct violative of FINRA Rule 2010 and 8210.
