FINRA fined and suspended Phillip Paul Tibbetts for accepting a loan from a customer at Pruco Securities of San Diego without notifying nor receiving authorization from Pruco. Firm policy at the time required brokers to obtain written approval before borrowing funds from customers, and even so, Pruco would only grant permission in "limited situations."
While the report notes that in 2017, Tibbetts (CRD #6664181) borrowed $1,800 from a customer without authorization, and that Pruco Securities permitted his resignation in early 2018, a review of Tibbetts' BrokerCheck report indicates a history of financial trouble, including three financial compromises related to a personal credit card and business accounts; the file indicates additional associations throughout Orange County and southern California.
In November 2017, a client alleged via customer dispute that Tibbetts borrowed money and then failed to repay the funds; the complaint has since been denied.
Unauthorized loans can be risky business, especially when paired with a broker's own circumstance of financial peril.
For example, FINRA in 2017 sanctioned former Edward Jones representative Mitchell Glenn Behm for taking an unauthorized $180,000 loan from an elderly customer and for willfully failing to timely disclose a previous bankruptcy petition.
Similarly, FINRA in January 2018 fined and suspended former Ameriprise rep Lorene Fairbanks Miller for improperly borrowing money from a client, comprising her 12th disclosure, including more than $300,000 in settled customer disputes alleging churning, unauthorized trading, unsuitable recommendations, misrepresentation, and negligent supervision.
If you have invested with Phillip Paul Tibbetts or with another broker or financial adviser whose unauthorized borrowing or misconduct related to financial turbulence, such as unauthorized trading, churning, or unsuitable recommendations, has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.