FINRA’s Department of Enforcement has filed a disciplinary proceeding complaint against financial advisor Alan Price for borrowing $150,000 from a 72-year-old Edward Jones customer in violation of firm policies.
If you have suffered investment losses with Alan Price or Edward Jones, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.
FINRA Disciplinary Proceeding No. 2020066136801
On August 30, 2021, the FINRA Department of Enforcement filed a complaint against broker Alan Price.
The complaint alleges that, in June 2019, Mr. Price borrowed $150,000 from a 72-year-old Edward Jones customer.
At the time of the loan, Edward Jones’ written procedures prohibited lending or borrowing between registered representatives and firm customers unless one of several specified exceptions applied, and in all cases required the firm’s written approval prior to the issuance of the loan. Exceptions were possible for loans to or from members of a registered representative’s immediate family, from customers who were in the business of lending money, between two Edward Jones employees, or if the customer and representative had a personal or business relationship outside of their relationship at the firm.
To generate the cash needed to make the loan to Mr. Price, the customer partially liquidated or redeemed securities in one of his accounts at Edward Jones. After the necessary trades were completed, the customer withdrew $155,000 from his account. The customer received that amount in the form of a check from Edward Jones and then wrote Mr. Price a separate check for $150,000. These transactions caused the overall value of the customer’s Edward Jones accounts to decline by approximately 21%.
Mr. Price did not notify Edward Jones of the loan, none of the firm’s specified exceptions applied, and the firm never approved of the loan in writing. Accordingly, Mr. Price violated FINRA Rules 3240 and 2010.
Mr. Price also failed to comply with requests for documents and information that FINRA made pursuant to FINRA Rule 8210, in connection with an investigation into whether Mr. Price borrowed money from the customer or other customers. Mr. Price did not provide any substantive response to FINRA’s requests until May 28, 2021 – after FINRA Enforcement had initiated the proceeding. Thus, Price violated FINRA Rules 8210 and 2010.
Mr. Price also failed to provide testimony about whether he borrowed money from the customer during his on-the-record (“OTR”) testimony taken pursuant to FINRA Rule 8210. As a result, Mr. Price violated FINRA Rules 8210 and 2010.
Alan Price (CRD#: 3181061)
Mr. Price was registered with Edward Jones from March 2007 through March 25, 2020.
On March 25, 2020, Edward Jones filed a Uniform Termination Notice for Securities Registration (“Form U5”) stating that it terminated Mr. Price’s employment effective February 27, 2020, for “[c]oncerns that [Price] engaged in a personal loan with a client.”
Mr. Price first registered with FINRA as a General Securities Representative in March 2007.
Although Mr. Price is no longer registered or associated with a FINRA member, he remains subject to FINRA’s jurisdiction, pursuant to Article V, Section 4 of FINRA’s By-Laws.
How to Recover Losses or Obtain a Free Consultation
If you have suffered investment losses with Alan Price or Edward Jones, contact New York securities arbitration 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.