Securities Arbitration Lawyer Blog
FINRA has barred former NYLife Securities LLC broker Jeffrey Scott Anderson from the securities industry after he converted $26,579 from his elderly NYLife customer and used the funds to pay for personal expenses.
If you have lost money with Jeffrey Scott Anderson, or NYLife Securities LLC, contact investment fraud lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Letter of Acceptance, Waiver, and Consent No. 2020067888701
Jeffrey Scott Anderson and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on August 2, 2021.
According to the AWC, from October through December 2019, Mr. Anderson converted $26,579 from his elderly NYLife customer by convincing the customer to write five checks to him personally to purchase investments or insurance for the customer. Rather than using the funds to purchase investments or insurance, Mr. Anderson deposited the customer’s funds into his personal bank account and used the funds to pay for personal expenses, including household expenses, food, gas, and car payments.
By converting and misusing the customer’s funds, Mr. Anderson violated FINRA Rules 2150(a) and 2010.
FINRA Rule 2150(a) provides that “[n]o member or person associated with a member shall make improper use of a customer’s securities or funds.” Use of customer funds for personal expenses or for any purpose not directed by the customer violates FINRA Rule 2150.
FINRA Rule 2010 requires FINRA members and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” Misuse of customer funds constitutes a conversion, in violation of FINRA Rule 2010, when there is an intentional and unauthorized taking of or exercise of ownership over property by one who neither owns the property nor is entitled to possess it.
Jeffrey Scott Anderson (CRD#: 5993214)
Mr. Anderson had six years of experience in the securities industry and first registered with FINRA in April 2014 through an association with FINRA member NYLife Securities, LLC. In a Form U5 dated March 13, 2020, NYLife reported that the firm had permitted Mr. Anderson to resign after an internal review “raised a number of concerns regarding the quality of his business, including repeat replacement and suitability concerns and undisclosed customer complaints.” On September 9, 2020, NYLife filed a Form U5 amendment disclosing two customer complaints against Mr. Anderson, including from a customer who provided NYLife with “copies of three personal checks from the period October 2019 to November 2019 which were made payable to and endorsed by [Mr. Anderson] totaling $16,500.”
In September 2020, Mr. Anderson became registered as a broker through an association with Pruco Securities, LLC. On December 3, 2020, the firm filed a Form U5 reporting that it had discharged Mr. Anderson because he “misappropriated funds from a customer while associated with another FINRA member and submitted altered documentation to Company investigators during its internal investigation.” NYLife filed another Form U5 amendment for Mr. Anderson on May 8, 2021, reporting an additional customer complaint against Mr. Anderson.
Mr. Anderson’s public FINRA CRD shows a total of five customer complaints, including a claim alleging that he misled an investor into canceling life insurance policies with another carrier and purchasing policies with NYLife. Unbeknownst to the customer, the policies purchased with NYLife carried a higher premium, and the money to pay the premiums was coming from a variable annuity Mr. Anderson sold him.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Jeffrey Scott Anderson, or NYLife Securities LLC, contact investment fraud lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.