Fred Brown (CRD#: 1175385), a 32-year veteran of the securities industry whose career spans 9 firms, has been suspended by FINRA, the Financial Industry Regulatory Authority. Based in Alabama, Brown was previously registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #: 7691). According to his BrokerCheck report, accessed on July 25, 2019, “Without admitting or denying the findings, Brown consented to the sanctions and to the entry of findings that he borrowed $69,000 from two of his member firm’s customers without providing notice to, or receiving written pre-approval from, the firm.” Fred Brown entered into an AWC on July 1, 2019 and the suspension will last until February 29. 2020. Fred Brown was also required to pay a $12,500 fine.
Before the July 1, 2019 regulatory action by FINRA, Fred Brown settled two disputes concerning the loans. He settled a dispute for $55,000 after a customer filed a claim on October 17, 2016 and alleged “misappropriation of funds through solicitation of a fraudulent loan in May 2016.” He settled a customer dispute for $14,000 after a customer filed a claim on June 2, 2017 and alleged “that the Financial Advisor solicited a loan from her in December 2016 that remains unpaid.” After settling the first dispute related to these loans, he was terminated from Merrill Lynch, Pierce, Fenner & Smith Incorporated after “allegations that the registered representative accepted funds from a client without the Firm’s approval.”
Fred Brown has been suspended twice and has several other complaints, according to his BrokerCheck report accessed on July 29, 2019.
On March 17, 2016, he was subject to a judgment/lien of $35,157.28. A year later, on March 8, 2017, FINRA suspended Fred Brown because he “failed to comply with an arbitration award or settlement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”  On April 10, FINRA lifted the suspension after he paid the arbitration amount.
Throughout his career, Fred Brown has also been registered with E.F. Hutton and Company Inc. ((CRD# 235), Wolfe and Hurst Securities Inc. (CRD# 7352), Lehman Brothers Inc. (CRD# 7506), Citigroup Global Markets Inc. (CRD# 7059), Morgan Stanley DW Inc. (CRD# 7556), Morgan Stanley & Co Incorporated (CRD# 8209), and UBS Financial Services Inc. (CRD# 8174).
If Fred Brown was your broker and you have questions about your investments, please don’t hesitate to contact the experienced securities attorneys of Fitapelli Kurta. Our attorneys only represent investors like you, not powerful brokerage firms. Call (877) 238-4175 for your free consultation or email us at