Securities Arbitration Lawyers BlogFINRA Suspends Broker Patrick Phillips After Allegedly Borrowing $70K From Client
Patrick Jermaine Phillips (CRD #4315963) is a former registered broker and investment advisor whose last employer was MSI Financial Services, Inc. (CRD #14251) of Chicago, IL. His previous employers include Citigroup Global Markets Inc. (CRD #7059), Ameriprise Financial Services, Inc. (CRD #6363) and Robert W. Baird & Co. Incorporated (CRD #8158), also of Chicago. He has been in the industry since 2001. No current employment information is available.
On 6/8/2017, a customer filed a complaint against Robert W. Baird, attempting to recover $70,000 that Phillips borrowed from her during his employment and refused to repay. Philips borrowed the money without the knowledge of Baird and in violation of the firm’s policies.
On 8/3/2018, FINRA suspended Phillips after a disciplinary action, which included the unauthorized loan and violating the policies of member firm CGMI prohibiting the use of personal emails for business purposes. These emails prevented CGMI from seeing the emails regarding the loans, as required by the firm’s rules on recordkeeping. Additionally, in 2013, the client moved all of her accounts to CGMI so that Phillips could continue as her broker.
Through his legal counsel, Herrera indicated to FINRA that he declined to provide the requested information to them. On 7/23/2018, without admitting or denying the findings, Herrera signed the AWC letter, accepting sanctions. In the letter, FINRA indefinitely barred Herrera in all capacities.
Leone was barred from association with any FINRA member in all capacities. The sanctions were based on findings that Leone failed to attend an on-the-record interview during an investigation by FINRA. The findings stated that FINRA opened an investigation into Leone’s potential unsuitable recommendations and excessive trading in customer accounts. FINRA twice requested that Leone appear at an on-the-record interview to provide testimony.
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