FINRA’s Department of Enforcement investigated Hancock and alleged he obtained IRA contributions from two customers in the amount of $5,500, respectively, in 2014. According to FINRA, both checks were made payable to the d/b/a name under which Hancock conducted his securities business. Hancock allegedly deposited the funds in his business account and used the funds for his personal benefit without the customers’ authorization. However, Hancock eventually forwarded $5,500 to the mutual fund sponsor for investment on behalf of one of the defrauded customers.
Based upon the foregoing misconduct, FINRA alleged Hancock violated two FINRA Rules, namely FINRA Rule 2150(a) and 2010. For example, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.’” Here, Hancock’s fraudulent act of stealing customers’ funds was not just and equitable.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Hancock while employed by Investors Capital Corp., you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.