Patrick Jermaine Phillips of Chicago Illinois a stockbroker formerly employed by Robert W. Baird has been fined $10,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based in part on consenting to findings that Phillips entered into unapproved customer loan arrangements. Letter of Acceptance Waiver and Consent No. 2017054796901 (Aug. 3, 2018).
According to the AWC, during which time Phillips had been associated with Robert W. Baird, the firm’s written supervisory procedures disallowed financial advisors, in all circumstances, from borrowing from the firm’s customers. Nonetheless, in April of 2009 and December of 2009, a total of $70,000.00 had been borrowed by Phillips from customer DJ.
The AWC stated that the funds DJ used for the borrowing arrangement had been taken out of DJ’s checking account maintained at an unaffiliated bank. Evidently, Phillips never informed Robert W. Baird about borrowing the $70,000.00 from the customer. Even worse, the AWC stated that the customer had not been repaid according to the arrangement between them. FINRA found that Phillips’ conduct was violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2370.
FINRA Public Disclosure confirms that Phillips is referenced in a customer initiated investment related written complaint which settled on January 5, 2018 for $45,000.00 in damages based upon accusations that Phillips failed to repay a loan to the customer.
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