Richard Edwin Seidel, of Wyomissing, Pennsylvania, a stockbroker formerly registered with Pruco Securities, LLC, has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in an unauthorized borrowing arrangement with a firm customer. Letter of Acceptance, Waiver and Consent, No. 2016050057401 (Dec. 14, 2016).
According to the AWC, in March of 2008, Seidel made arrangements with a firm customer to borrow $55,000.00 in funds. Apparently, the customer utilized a loan provision within his life insurance policy to obtain the $55,000.00 for Seidel. The AWC stated that the customer and Seidel never documented the borrowing agreement in any verbal or written fashion concerning repayments terms. Apparently, none of the monies have been paid back to the customer by Seidel.
The AWC revealed that Pruco was never notified by Seidel regarding the borrowing arrangement, and as a result, Pruco never approved of it. The AWC stated that Seidel’s borrowing arrangement was actually prohibited by the firm. Evidently, Pruco learned of Seidel’s misconduct after the customer complained in 2015 regarding the monies not having been paid back by Seidel. Subsequently, Pruco terminated Seidel’s registration on June 23, 2016. FINRA found that Seidel’s unauthorized borrowing arrangement was violative of NASD Rules 2110 and 2370.
FINRA Public Disclosure reveals that Seidel has been named in two customer arbitration claims. Particularly, on February 13, 2008, a customer filed an investment related arbitration action involving Seidel’s conduct, based upon allegations that Seidel made misrepresentations to the customer concerning a variable life insurance policy payment plan. In December of 2015, a customer filed an investment related arbitration claim concerning Seidel’s conduct, in which the customer requested $55,000.00 in damages based upon allegations that Seidel did not return funds borrowed from the customer.
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