Philip Andrew Johnson of Nashville Tennessee is a stockbroker formerly associated with SunTrust Investment Services Inc. who has been fined five thousand dollars and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he borrowed funds from a customer without authorization from the firm. Letter of Acceptance Waiver and Consent No. 2017053041801 (Feb. 27 2018).
According to the AWC, between June and August of 2010, a total of $528,000.00 had been borrowed by Johnson from customer DS, where Johnson never informed the firm or procured the firm’s approval beforehand. Evidently, Johnson and DS were not family members, so he was prohibited from borrowing DS’ funds. Apparently, Johnson inaccurately represented his activities concerning a customer loan in the compliance questionnaires that SunTrust required him to complete. Consequently, FINRA found that Johnson’s conduct was violative of FINRA Rules 2010 and 3240, as well as National Association of Securities Dealers (NASD) Rules 2110 and 2370.
This is not the first time that Johnson has been sanctioned for misconduct. FINRA Public Disclosure reveals that the State of Tennessee revoked Johnson’s securities registration and ordered Johnson to cease and desist engaging in securities sales within the state. Case No. 79-2-01-6.
FINRA Public Disclosure confirms that Johnson has been identified in two customer initiated investment related disputes containing accusations of Johnson’s misconduct during the time that he was registered with SunTrust Investment Services, Inc. Particularly, on April 14, 2009, a customer initiated investment related written complaint involving Johnson’s conduct was settled for $16,517.00 in damages based upon allegations that Johnson failed to include an income rider on the customer’s annuity, preventing the customer from obtaining a better guaranteed income stream.
Thereafter, on May 30, 2017, a customer initiated investment related written complaint regarding Johnson’s activities was resolved for $600,000.00 in damages supported by accusations that Johnson induced the customer’s decision to invest in a real estate venture, and entered into a personal loan arrangement with the customer in order to acquire real estate.
Johnson’s registration with SunTrust Investment Services, Inc. has been terminated on December 31, 2017 based upon allegations that Johnson executed an unauthorized customer loan arrangement.
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