Guggenheim Stockbroker Barred By FINRA For Conversion

Andrew Markman Arthur (also known as Andy M. Arthur) of Summit New Jersey a stockbroker formerly employed by Guggenheim Securities has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he converted investor funds and had provided false statements to FINRA. Letter of Acceptance Waiver and Consent No. 2020065385101 (Aug. 13, 2020).

According to the AWC, in October of 2016, a relative of Arthur was falsely told that there was an employee investment program through Guggenheim that allowed for family members to invest alongside employees in the private placements which Guggenheim offered. The AWC stated that three payments totaling $275,000.00 had been sent to Arthur by the relative between October of 2016 and February of 2017. The relative expected to be invested in the program described by Arthur only to find that the program did not exist.

FINRA indicated that Arthur used funds for his own expenses and to pay other individuals to whom he was indebted. The AWC noted that the relative had been lied to by Arthur regarding repayment of funds and expected investment returns. It was not until September of 2017 that the stockbroker’s conversion of funds was uncovered. FINRA found that Arthur’s conversion of funds was violative of FINRA Rules 2010.

The AWC stated that Arthur was not forthcoming with the regulator when he was investigated about his use of the $275,000.00 in funds. Between August of 2017 and April of 2018, he provided false written statements and false testimony to FINRA in regard to his correspondence about an investment idea. The stockbroker sent emails regarding his investment idea to his relative while indicating to the regulator that he did nothing of the kind.

Arthur falsely told FINRA Department of Enforcement in February 2018 that his relative loaned him funds for living expenses. The stockbroker knew that those funds were actually provided to him for the private placement investment and not for addressing his living expenses. Arthur’s actions in this respect constituted the violation of FINRA Rules 2010 and 8210.

FINRA Public Disclosure reveals that Arthur was terminated by former securities broker dealer FBR Capital Markets supported by allegations of his failure to abide by its policy governing correspondence with customers about private placements. On September 7, 2018, he was discharged by another securities broker dealer employer GMP Securities based upon accusations of his use of false brokerage account statements.