Billy Stanage Allegedly Obtained Loan from Client
On July 20, 2023, FINRA, the regulator who oversees brokers and brokerage firms, barred financial advisor Billy Stanage Jr. after he reportedly failed to provide information in its investigation. FINRA was reportedly investigating the circumstances surrounding Stanage’s alleged termination from his member firm. Commonwealth Financial Network reportedly filed a Form U5 stating that it had discharged Stanage for failing to obtain firm approval for an outside business activity (OBA). Further, Commonwealth reportedly determined that Stanage had obtained a loan from a client without seeking firm approval.
FINRA Rule 3270 requires registered individuals to disclose any outside business activities and obtain approval from their member firms before engaging in such activities. This rule is designed to protect investors by ensuring that registered individuals do not engage in activities that may compromise their professional responsibilities, cause conflicts of interest, or divert their attention from their primary duties to their clients.
Some examples of activities that FINRA considers to be outside business activities are running a business that is not related to the securities industry, such as a retail store or restaurant; serving as an officer or board member of a nonprofit organization, unless the organization is related to the securities industry; working for another financial services firm in a capacity that is not related to the representative’s work at their registered firm.
FINRA Rule 3240 explains the details of why borrowing from or lending to customers is prohibited.
FINRA BrokerCheck – Billy Stanage
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA. It’s also a great way to review their employment history, licensing status, and any regulatory actions or complaints filed against them.
According to his FINRA broker report, Billy Stanage has been affiliated with the following firms during his career in the securities industry, including the following:
12/04/2019 – 03/07/2023, COMMONWEALTH FINANCIAL NETWORK (CRD#:8032), Rio Rancho, NM,
B, 12/08/2016 – 11/29/2019, SECURITIES AMERICA, INC. (CRD#:10205), Rio Rancho, NM
B, 05/04/2015 – 12/08/2016, FOOTHILL SECURITIES, INC. (CRD#:1027), Rio Rancho, NM
B, 01/08/2002 – 05/01/2015, CETERA ADVISOR NETWORKS LLC (CRD#:13572), RIO RANCHO, NM
Billy Stanage’s BrokerCheck record indicates one customer complaint has been filed against him on June 26, 2023. The allegations were for misrepresentation of a Universal life policy and the complaint was reportedly denied.
Recovery of Investment Losses
The White Law Group is investigating potential securities claims involving Billy Stanage and the liability his employers may have for failure to supervise her. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including New Mexico. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you are concerned about your investments with Billy Stanage, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit WhiteSecuritiesLaw.com.
Tags: Billy Stanage Jr. FINRA bar, broker investigation Last modified: August 1, 2023