FINRA suspended broker David Lloyd Barber of Rancho Santa Fe, California and fined him $25,000 for improperly receiving five loans totaling $867,000 from multiple customers of Barber's at Raymond James & Associates, Inc.'s Newport Beach branch.
According to the findings, after Barber effected these loans, which were secured from customers described as "personal friends," he concealed the activity from Raymond James by routing the loans through a bank account linked to Glenbrook Avocados, LLC, an outside business Barber owned.
FINRA rules state that unless a firm has specific written procedures governing and allowing loans and unless said firm has given its consent, brokers are prohibited from borrowing funds from customers. Furthermore, all brokers must disclose outside business activities to employing firms.
Because Barber allegedly engaged in both firms of misconduct—borrowing and concealing—Raymond James terminated his employment immediately after discovering the illicit activity.
If you have invested with or loaned money to David Lloyd Barber, firm Raymond James or with any broker whose violation of FINRA rules has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.