Robert Montano, of Chicago, Illinois, a stockbroker formerly registered with U.S. Bancorp Investments, Inc., has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he entered unauthorized loans with the firm’s customers. Letter of Acceptance, Waiver and Consent, No. 2016049236701 (Dec. 21, 2016).
According to the AWC, in February of 2015, Montano entered into a lending arrangement with a business owned by customer JM, who lent Montano $10,000.00. Days later, a total of $45,000.00 was borrowed by Montano from ES, a customer of U.S. Bancorp Investments, where the loan arrangement called for at least $1,000.00 to be repaid by Montano to ES every few weeks. The AWC revealed that the money that Montano borrowed has not been repaid to ES. FINRA was reportedly made aware of Montano’s failure to repay ES in March 14, 2016, when the customer complained about it to FINRA staff.
The AWC stated that the firm disallowed registered representatives such as Montano from borrowing or lending funds from or to non-family members. Since neither ES or JM were family members, Montano’s borrowing arrangements were unauthorized. FINRA found Montano’s conduct violative of FINRA Rules 2010 and 3240.
FINRA Public Disclosure confirms that Montano failed to pay the $5,000.00 in fines pertaining to FINRA’s disciplinary action against him, which resulted in the revocation of his FINRA registration on April 17, 2017.
Thereafter, a customer filed an investment related arbitration claim involving Montano’s conduct, where the customer sought $90,000.00 in damages based upon accusations that Montano made misrepresentations to the customer and effected unsuitable equity transactions in the customer’s investment account. FINRA Arbitration No. 17-01726 (June 27, 2017).
U.S. Bancorp Investments terminated Montano on September 4, 2015. From September 24, 2015 to December 21, 2016, he was associated with Waddell & Reed.
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