Thomas H. Lawrence III of Chapel Hill Tennessee a stockbroker formerly registered with Ameritas Investment Corp. is the subject of an Order issued by Tennessee Securities Division which barred him from being a stockbroker or an investment advisor in the State of Tennessee based on accusations that he borrowed money from an Ameritas Investment Corp. customer when he was associated with the firm. Tennessee Securities and Insurance Division v. Thomas Lawrence Docket No. 12.01-157664J (June 5, 2019).
The Tennessee Securities Division referenced that Lawrence was fined $5,000.00, ordered to pay $41,332.65 to a customer in restitution, and suspended for two years from associating with any FINRA member in any capacity according to an Order Accepting Offer of Settlement containing findings that Lawrence impermissibly borrowed a customer’s funds. Case No. 2016051945101 (Sept. 22, 2017). The Division found Lawrence’s unapproved borrowing arrangement to be violative of Tennessee Securities Act (§48-1-112).
According to the FINRA Order, Lawrence asked a ninety-six year old customer to loan him nearly $40,000.00. The customer acquiesced to the loan and a promissory note was executed containing repayment terms. Lawrence failed to repay the customer’s loan in accordance with the promissory note, and stopped speaking with the customer. Lawrence was prohibited by Ameritas procedures from entering into loan arrangements with customers of the firm. FINRA revealed that Ameritas was not provided any notification of the loan to Lawrence; and the loan arrangement had never been approved by the firm. Notwithstanding, throughout this time, Lawrence acknowledged Ameritas’ prohibition against borrowing. FINRA found his conduct violative of FINRA Rules 2010 and 3240.
Lawrence is referenced in a customer initiated investment related arbitration claim which was resolved for $475,000.00 in damages based upon allegations that Lawrence, inter alia, negligently transacted in the customer’s account; made investment recommendations that failed to be suitable; made false or misleading statements and omissions concerning investments; executed an unauthorized loan; and engaged in activities without Ameritas’ supervision resulting in the customer’s losses on direct participation programs or limited partnership interests. FINRA Arbitration No. 16-03082 (June 7, 2018).
Lawrence’s employment with Ameritas Investment Corp. has been terminated as of December 27, 2016.
