FINRA Bars Allstate Stockbroker For Obstruction

David Lee Reynolds, of Modesto, California, a stockbroker formerly employed with Allstate Financial Services, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he failed to cooperate in an investigation into allegations that he misappropriated customer funds. Letter of Acceptance, Waiver and Consent, No. 2017055823701 (Nov. 29, 2017).

FINRA Public Disclosure reveals that Reynolds was fired on October 18, 2017, supported by accusations that he failed to respond to the firm’s inquiries into whether he misappropriated a former broker-dealer’s customer’s funds. The AWC stated Reynolds was sent a letter by FINRA on October 6, 2017, which sought that he provide information and documentation as referenced by Principal Securities – a firm that Reynolds was associated with between May 22, 2018 and December 31, 2015.

Evidently, Reynolds responded to FINRA staff on November 2, 2017, indicating that Reynolds was cognizant of FINRA’s request but would at no point be cooperating in the regulator’s investigation into his activities. Consequently, FINRA found that Reynolds’ conduct was violative of FINRA Rule 8210.

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer

Guiliano Law Group

Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.

For more information concerning common claims against stockbrokers and investment professionals, please visit us at

To learn more about FINRA Securities Arbitration, and the legal process, please visit us at