Charles Anderson Cumber Jr., of Albuquerque, New Mexico, a stockbroker formerly registered with U.S. Bancorp Investments, Inc., was fined $7,500.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he engaged in unapproved outside business activities involving insurance and equity-indexed annuities. Letter of Acceptance, Waiver and Consent, No. 2016050901101 (Sept. 29, 2017).

According to the AWC, from January of 2015 to March of 2016, Cumber facilitated the sales of twenty-four annuities to twenty investors. Apparently, the equity-indexed annuities sales totaled an estimated $2,630,000.00, and involved at least thirteen customers of U.S. Bancorp Investments. The issuing insurance company for the equity-indexed annuities reportedly paid Cumber around $125,000.00 for his sales efforts.

The AWC detailed that Cumber also established Cumber & Associates LLC, which was the recipient of an additional $27,000.00 based on prior insurance sales that Cumber generated. During the time that Cumber was at U.S. Bancorp Investments, he was reportedly paid $345,000.00 by the insurance company he associated with to sell insurance products and equity-indexed annuities.

Critically; however, Cumber never informed U.S. Bancorp Investments, Inc. about his business activities, including his involvement with Cumber & Associates, LLC, and the insurance business that Cumber facilitated in return for compensation. Yet, Cumber confirmed with his firm from October of 2011 to March of 2016 that he did not participate in any outside business activities. The AWC stated that Cumber consistently confirmed that he acknowledged the U.S. Bancorp Investment’s disallowance of insurance products and equity-indexed annuity sales, among other business activities, from being pursued without providing the firm with notification in writing. FINRA found that Cumber’s conduct was violative of FINRA Rules 2010 and 3270 in that regard.

FINRA Public Disclosure reveals that Cumber’s registration with U.S. Bancorp Investments was terminated as of March 3, 2016. Cumber was associated with Wells Fargo Clearing Services, LLC, from April 26, 2016, to February 2, 2017, at which point he was fired for failing to provide the firm with information about his outside business activities. Since April 20, 2017, Cumber has been associated with Brokers International Financial Services, LLC.

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