Donald Wayne Hastings, a former broker with Lincoln, Nebraska based Allstate Financial Services, LLC, submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that a customer provided Mr. Hastings with a check for $12,000 to open an IRA. The customer believed the funds would be invested on his behalf and that he would receive 5 percent interest on his investment. Mr. Hastings neither created the IRA nor opened an account for the customer. The customer was 73 years-old, therefore an IRA could not be opened. FINRA's findings stated that Mr. Hastings deposited the customer's funds into a business account under his direction and control. Mr. Hastings paid interest to the customer using his own funds at prevailing interest rates. FINRA also stated that the customer was unaware the IRA was never created and his funds were never invested in any securities or investment products. FINRA further included that Mr. Hastings did not inform or seek approval from his supervisor or from anyone with his member firm to commingle the customer's funds in an account under his personal control. When the customer inquired about his IRA account, the firm informed the customer that he did not have an IRA account with the firm. Mr. Hastings, of Lewisville, Texas, was barred from association with any FINRA member in any capacity.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to prohibited activity such as the above described can bring forth claims to recover losses against Allstate Financial Services, which should have prevented Mr. Hastings from committing the illegal acts. Have you suffered losses in your Allstate Financial Services, LLC account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.