FINRA 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.

Phillips signed a letter of Acceptance, Waiver & Consent (AWC), without denying or admitting findings, and agreed to sanctions which include a fine of $10,000 and a five-month suspension beginning on 8/6/2018 and ending on 1/5/2019.

Two previous disclosures are judgment/liens related to his divorce. The first was filed on 3/9/2016 for $2,728.28, and the second on 9/24/2015 for $474.77. Phillips stated that he was unaware of both. No payment or additional information is available.

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