FINRA barred former Allstate Financial Services LLC broker Donald Wayne Hastings for placing customer funds in his business account, allegedly without permission or approval from his supervisor, firm or the customer.
According to the findings, Hastings agreed to open an IRA for a 73-year-old customer, receiving a $12,000 check from his customer for that purpose. The customer believed the funds invested in an IRA would receive 5% interest.
Pursuant to IRS regulations, however, investors cannot make regular contributions to a traditional IRA upon turning 70 and 1/2 years old (technically, January 1 of that calendar year).
Nonetheless, FINRA found Hastings failed to advise his 73-year-old client of this fact, even though no IRA was ever opened, which allegedly led the elderly customer to mistakenly believe his funds were properly being invested, as per his wishes.
Investigators discovered that instead, Hastings paid interest to the client using his own funds at prevailing rates; Hastings accordingly failed to inform his client, supervisor or employing firm of the circumstances.
Over three years after the misconduct began, the customer discovered something was wrong when he called the firm to ask about his IRA and the firm informed him they had no record of a traditional IRA for that customer.
If you have invested with Donald Wayne Hastings, Allstate Financial Services LLC or with any broker or firm who has improperly invested your funds or failed to deposit or open a requested account on your behalf, and such misconduct has proven harmful to your investments, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.