Philip Anthony Simone of Irvine California a stockbroker formerly registered with AXA Advisors LLC has been fined $12,000.00 and suspended for eleven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Simone borrowed funds from elderly customers and then failed to be forthcoming about it with AXA Advisors. Letter of Acceptance Waiver and Consent No. 2019062406701 (Nov. 13, 2020).
According to the AWC, between July of 2017 and February of 2019, six loans worth $43,000.00 had been taken by Simone from one customer and $90,000.00 had been taken by Simone from a second customer. Neither customer bore any family relation to the stockbroker.
In the first customer’s situation, the loan provided to Simone was not evidenced in writing. The customer was told by Simone that funds would be repaid within a year and that the customer would receive 12 percent interest on the loan. The second customer and Simone executed promissory notes in December of 2018 and February of 2019.
Neither customer loan was authorized by AXA at the time that Simone received possession of the customers’ funds. The stockbroker was disallowed by AXA from borrowing from customers according to AXA’s written supervisory procedures. Simone completed two compliance questionnaires for AXA in which he falsely relayed that he had not been loaned money from customers.
The AWC stated that Simone’s activities were violative of FINRA Rules 2010 and 3240.
FINRA also determined that Simone falsified documents that he provided to a third party relating to a mortgage application. Simone’s conduct violated FINRA Rule 2010 in this respect.
Simone has been identified in three customer initiated investment related disputes containing allegations of his violative activities while employed by AXA. FINRA Public Disclosure confirms that a customer initiated investment related complaint regarding Simone’s activities was resolved for $22,163.71 in damages founded on allegations that the customer had been advised by Simone to buy insurance policies which had failed to align with the customer’s interests. The complaint also alleges that misrepresentations had been made to the customer about guaranteed interest on annuities.
On June 20, 2019, another customer filed an investment related complaint concerning Simone’s conduct where the customer sought $90,000.00 in damages based upon allegations that the customer’s funds had been misappropriated and that a private placement was misrepresented by the stockbroker during the time that he was associated with AXA. Simone has also been referenced in a customer initiated investment related complaint on November 17, 2019 in which the customer requested $38,000.00 in damages supported by allegations of misappropriation of funds provided to Simone relating to a promissory note investment. According to the claim, the customer was also placed into a variable annuity that had been misrepresented by the stockbroker.
Simone has been terminated from two securities broker dealers for misconduct. He was discharged by OneAmerica Securities Inc. founded on allegations of entering into an unapproved customer loan. He was discharged by AXA on April 17, 2019 based upon allegations of misrepresentations and altering of documents.