FINRA’s Department of Enforcement investigated Quinn and alleged he entered into various loans and promissory notes with a customer while employed by Wells Fargo. According to FINRA, beginning in May 2009, Quinn borrowed $64,000 from the customer in eight transactions while she was his customer at Wells Fargo. When Quinn joined Stifel Nicolaus in 2010, he continued to borrow funds from the same customer. Specifically, Quinn borrowed an additional $3,000, but never repaid this loan.
FINRA alleged Quinn violated several FINRA rules and regulations, including NASD Rule 2370 (which was in effect while Quinn was associated with Wells Fargo) and FINRA Rule 3240. FINRA Rule 3240 prohibits registered persons from borrowing money from or lending money to any customer certain conditions and/or exceptions are satisfied. Specifically, FINRA Rule 3240 prohibits registered persons from borrowing money from or lending money to any customer unless: 1) the representative’s employing member firm has written procedures allowing borrowing from or lending to customers; 2) the borrowing or lending meets at least one of the conditions specified in Rule 3240(a)(2); and 3) the registered person notifies the firm of the borrowing or lending arrangement and obtains pre-approval in writing. A violation of FINRA Rule 3240 also constitutes a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principals of trade.
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 Quinn, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.