The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Robert E. Heath. Mr. Heath was previously employed and registered with Presidential Brokerage, Inc. at the broker-dealer’s Colorado Springs, Colorado office, according to his publicly available BrokerCheck records maintained by the Financial Industry Regulatory Authority (FINRA).
Per his BrokerCheck report, Mr. Heath was previously employed and registered by AXA Advisors, LLC from December 2008 to December 2012, and employed by VALIC Investment Services Company from September 1990 to December 2008.
In 2016, Mr. Heath was fined and suspended from association with any FINRA member broker-dealer for three months by FINRA, after submitting a Letter of Acceptance, Waiver and Consent No. 2015046946301 (AWC). According to the AWC, Mr. Heath violated FINRA Rules 3240 (Borrowing From or Lending to Customers) and 2010 (Standards of Commercial Honor and Principles of Trade) because in July 2012, “while associated with AXA Advisors, Heath borrowed $7,500 from his customer … made one monthly interest payment to [the customer] in August 2012,” even though AXA Advisors prohibited their registered representatives to borrow money from their customers under any circumstances.
Generally speaking, FINRA Rule 3240 prohibits brokers from borrowing from their customers, except in very limited circumstances, and then only if their employing firm has procedures in place for such lending arrangement, and the firm approves of the transaction.
According to his BrokerCheck records, Mr. Heath was discharged from Presidential Brokerage, Inc. on August 13, 2015 amid allegations that a client of his had made an outside investment with Mr. Heath. The BrokerCheck records further indicated:
In July 2012 a check from the customer in the amount of $7500 was deposited into a corporate account under the control of the registered representative and was subsequently transferred over a period of several days to his personal bank account constituting a possible conversion of customer funds.
According to his BrokerCheck report, Mr. Heath’s former employer reported that “the funds were a personal loan.”
According to his BrokerCheck report, Mr. Heath was the subject of a customer complaint received in or around October 2008 alleging that the “client’s transfer request was not submitted for processing after being given to advisor,” and claiming damages of $7,878. Conversion is generally defined as the wrongful taking of your property and transferring it away from your control.