FINRA Suspends and Fines Former Broker for Borrowing Money from Client
The Financial Industry Regulatory Authority has fined and suspended former broker Kim Millman for borrowing $6,000 from a client and failing to disclose six tax liens and two civil judgments totaling $565,310.
The Financial Industry Regulatory Authority has fined and suspended former broker Kim Millman for borrowing $6,000 from a client and failing to disclose six tax liens and two civil judgments totaling $565,310.
Millman spent 20 years with Park Avenue Securities before she was terminated for “borrowing money from a customer in violation of firm policy and FINRA Rule 3240,” according to her BrokerCheck profile. She is not currently registered.
FINRA claims that in September 2018, Millman borrowed $6,000 from a Park Avenue customer, who was also her friend, without the firm’s approval or knowledge.
According to FINRA, the client wrote a personal check for $6,000 to Millman with the agreement that the loan would be repaid within a few months with 3 percent interest. Millman repaid the client in December 2019, after the client notified Park Avenue about the loan.
Park Avenue’s written supervisory procedures prohibit the borrowing or lending of money or securities to or from a customer.
In addition, Millman allegedly failed to amend her Form U4 to disclose three tax liens filed by the Internal Revenue Service and three liens filed by the State of New York totaling approximately $547,988, as well as two civil judgments totaling $17,322.
FINRA requires registered persons provide details about a reportable event, such as a judgment or lien, within 30 days of receiving a notice. FINRA claims that Millman did not disclose the first reportable event until five years after receiving notice, and more than 30 days after receiving notice of the last reportable event.
Without admitting or denying the allegations, Millman agreed to an eight-month suspension and a $10,000 fine.
