Fred Brown Suspended, Involved In Disputes

Broker Fred Brown Faces Regulatory Action, Disputes Over Borrowing Money From Clients

Soreide Law Group is reviewing possible investor claims relating to securities broker Fred Ronald Brown (CRD#: 1175385, Montgomery, Alabama). Notably, the securities broker, who worked for Merrill Lynch from 2012 to 2017 in various capacities, faced a suspension and fine from FINRA for borrowing from a client and is involved in at least two investor disputes. Here’s what we know at this point.

FINRA Suspended Fred Brown From July 2019 to February 2020

For violating FINRA rules, the financial industry watchdog not only fined Fred Brown $12,500 but suspended him for 8 months. It appears that Brown borrowed $69,000 from two clients but did not tell Merrill Lynch. Apparently, he did not have permission to borrow from clients of the firm. Supposedly, the clients contacted the firm about the loans. Also, in a compliance questionnaire, Brown supposedly failed to admit that he was loaned money. Merrill Lynch disaffiliated with Brown for this reason.
FINRA says that Brown also failed to disclose liens and judgements.

Merrill Lynch Client Alleges Misappropriation By Fred Brown

Evidently, a Merrill Lynch client came forward in October 2017 to contest Fred Brown’s actions. Namely, the client said that Brown misappropriated funds. It seems that the broker possibly solicited the client for a loan in 2016. For this reason, in January 2018, Merrill Lynch opted to settle the matter by paying the client $55,000. The second dispute reported on Brown’s BrokerCheck Report shows similar allegations. That client received $14,000 to settle.

Losses From Fred Brown?

Apparently, Fred Brown denies allegations made against him. Have you experienced losses by investing through him? If you have, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced investment loss recovery attorneys to see if there is anything that you can do about it. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who lost money because of their advisors or brokers.