Cory Lee Mireau of Eden Prairie, Minnesota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in unapproved private transactions in violation of NASD Rule 3040 and FINRA Rules 3240, 3270 and 2010.
In July 2006, Cory Lee Mireau joined Ameriprise as a General Securities Representative and Investment Company/Variable Contracts Products Representative. According to the FINRA findings, Mireau borrowed $150,500 from two customers and used $140,000 to personally invest in private transactions without notice or approval from his firm. The findings stated that Mireau allegedly failed to repay the principal within two years with a 10 percent interest and the agreed shared 10 percent of his initial profits with one of the customers. The FINRA findings also stated that Mireau also performed outside consulting work for one of the customers and received $1,250 in compensation without approval from his firm. In addition to those findings, Mireau also allegedly falsely attested on annual compliance questionnaires that he had not engaged in unapproved private transactions and disclosed all outside business activities to his firm.
FINRA Rule 3240(a) prohibits registered representatives from borrowing from or lending money to his or her customer unless (1) their member firm employer has written procedures that allow the borrowing and lending of money between registered representatives and customers, and (2) the borrowing or lending arrangements meets at least one of the five circumstances specified in the rule. Even if these requirements are satisfied, Rule 3240(b) requires the registered representative to seek and obtain written approval from their member firm employer, unless the firm’s procedures provide otherwise. FINRA Rule 3240 also requires registered representatives to obtain prior written approval of any modifications to existing borrowing arrangements. A violation of FINRA Rule 3240 is also a violation of FINRA Rule 2010.
NASD Rule 3040 prohibits registered representatives from participating in any private securities transaction without first providing “written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.” A violation of NASD Rule 3040 is also a violation of FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Cory Lee Mireau has been fined $15,000, ordered to pay $154,458 in restitution to a customer and has been suspended from association with any FINRA member in all capacities for two years. The suspension is in effect from April 15, 2019, through April 14, 2021.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from private transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Ameriprise, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Ameriprise account due to private transactions by your broker? Was Cory Lee Mireau your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Ameriprise stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
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 40 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 email@example.com for answers to any of your questions about this blog post and/or any related matter.