ANDREW FREDERICK CLARK FINED AND SUSPENDED FOR ILLEGALLY OBTAINING LOAN PROCEEDS FROM HIS FAMILY'S INSURANCE POLICY

Andrew Frederick Clark, a former broker with New York, New York based MetLife Securities, Inc., 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 he applied for a $45,000 loan against a whole life, non-variable insurance policy, which he and immediate family members were joint owners of, without his family knowing; one of the family members was a firm customer. Mr. Clark signed the names of the family members on the loan application without their knowledge or consent. The loan was granted and the life insurance company disbursed a $45,000 check to Mr. Clark and his family members. FINRA also stated that Mr. Clark endorsed the check in his personal capacity and by signing the names of the family members without their knowledge or consent. Mr. Clark used the loan proceeds for personal purposes, which constituted the misuse of customer funds as to the family member who was a firm customer, and the misuse of non-customer funds as to the remaining family member. The findings also included that Mr. Clark repaid the loan in full with interest. Mr. Clark, of Englewood, Colorado, was fined $10,000 and suspended from association with any FINRA member in any capacity for two years. The fine must be paid either immediately upon Clark's re-association with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

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. As a result, investors who have suffered damages can bring forth claims to recover losses against broker-dealers like MetLife Securities, which should have prevented the described illegal activity. Have you suffered losses in your MetLife Securities, Inc. 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 pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.