SERVING CLIENTS NATIONWIDE

Stuart L Funke Suspended for Soliciting $500,000 in Loans without Firm Approval

The Financial Industry Regulatory Authority has suspended Stuart L. Funke through October 15, 2013 for soliciting $500,000-worth of loans in exchange for a promissory note, failing to notify his employing firm of this transaction before subsequently filing for Chapter 7 bankruptcy protection.

FINRA Case #2010024504601

According to FINRA's investigation, in 2005 and while with Crown Capital Securities, L.P., Funke convinced two firm customers to loan him $500,000 in exchange for a promissory note with a six-month maturity and 14% interest. After failing to inform Crown Capital about this loan, Funke left the firm and joined Private Consulting Group, Inc., where he remained through the note's maturity date in early 2006.

When the note matured and Funke failed to repay the agreed upon amount, the two customers sued Funke, ultimately receiving an out-of-court settlement of $220,000 plus an additional $120,000 promissory note in January 2007. Funke filed for Chapter 7 bankruptcy protection in 2010.

According to the investigation, Funke at no time alerted Crown Capital or Private Consulting Group of any transactions or litigation related to the $500,000 loan, nor did Funke alert his firm or FINRA itself of his Chapter 7 bankruptcy protection filing by amending his Form U4, as required by FINRA's by-laws and rules.

If you have invested with Stuart L Funke or any registered broker who has borrowed funds from you, and this activity has proven harmful to your investments or financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Categories