FINRA Sanctions UBS Stockbroker For Borrowing Money From Customers
Jay Howard Bluestine of New York New York a stockbroker formerly registered with UBS Financial Services Inc. and Raymond James Financial Services Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Bluestine entered into unapproved customer loan arrangements during the period that he was employed by UBS and Raymond James. Letter of Acceptance Waiver and Consent No. 2018060717701 (Sept. 23, 2020).
According to the AWC, from May of 2016 to July of 2016, when Bluestine was associated with UBS, he borrowed $200,000.00 from a customer of the securities broker dealer who was neither one of Bluestine’s family members nor a financial institution. In September of 2018, Bluestine borrowed another $100,000.00 from that customer during the time that the stockbroker was employed by Raymond James. FINRA stated that there were no documents completed or executed with regard to Bluestine’s loans from the customer. There was no clarity provided by Bluestine as to the interest rate associated with the loans and when Bluestine would pay the customer back. The AWC indicated that Bluestine failed to fully repay the customer.
The AWC stated that Bluestine was specifically instructed under the written supervisory procedures of both UBS and Raymond James to refrain from borrowing from customers unless approval was provided by those securities broker dealers. Bluestine concealed these loans from them as he never sought out their permission to borrow from the customer.
The AWC also revealed that Bluestine was administered a compliance questionnaire from UBS which called upon him to disclose any customer loan arrangements. Bluestine falsely indicated in his February 2017 response that he had not borrowed funds from a customer. Bluestine violated FINRA Rules 2010 and 3240.
Bluestine was registered with UBS between August 26, 2011 and December 10, 2017. He was registered with Raymond James between November 15, 2017 and November 13, 2018 at which point he was discharged based upon allegations of him introducing a customer to an investment which the securities broker dealer did not offer or approve.