The Financial Industry Regulatory Authority has barred former broker Andrew M. Arthur for allegedly converting $275,000 given to him by a relative for a fictitious employee investment program offered by his then-employer, Guggenheim Securities.
Arthur was most recently affiliated with TGP Securities Inc. until his voluntary termination in May 2019. Before that, he spent one year with GMP Securities LLC before his termination in September 2018 for a separate disciplinary action. From August 2014 to July 2017, he was associated with Guggenheim Securities LLC.
In October 2016, FINRA alleges that Arthur told his relative, who was not a Guggenheim customer, that the firm had an employee investment program that offered employees and their family members investment opportunities in Guggenheim-sponsored private placement offerings.
From October 2016 to February 2017, the relative purportedly sent Arthur three separate payments totaling $275,000 to be invested in the program, which did not exist.
FINRA alleges that Arthur used the relative’s funds, without their knowledge or consent, to pay for his own personal expenses and debts. He is accused of concealing the alleged theft until September 2019 by lying to his relative about the status of the “investment,” the expected returns, and repayment date.
He was also accused of lying to FINRA, claiming that he “borrowed” the funds from his relative for living expenses.
Arthur was previously sanctioned by FINRA in two separate instances. In September 2018, he was suspended for four months and fined $5,000 for allegedly submitting falsified brokerage account statements for two apartment rental applications.
Using his Guggenheim issued email, he allegedly submitted falsified brokerage account statements that showed that his account was valued at more than $1.8 million, when it was actually close to zero, FINRA said. He was terminated from GMP Securities for the alleged misconduct.
In another sanction from November 2015, he was suspended for 30 days and fined $5,000 for failing to amend his Form U4 to report a federal tax lien.
According to a letter of acceptance, waiver and consent, FINRA barred Arthur from association with any FINRA member in any capacity.