The White Law Group reviews the regulatory history of Pruco Securities LLC.
Pruco Securities LLC (CRD#: 5685/SEC#: 801-52208,8-16402), headquartered in Newark, New Jersey, is dually registered as an investment adviser and broker-dealer, and owned by Prudential. According to its CRD/FINRA BrokerCheck report, the firm has 44 disclosures on its record, including 30 regulatory events and 12 arbitrations, among others.
FINRA, the regulator that oversees brokers and brokerage firms, and the Securities and Exchange Commission may impose regulatory actions against a broker-dealer such as censures, fines, suspensions and restitution, among others. Regulatory actions can have serious consequences for a broker-dealer’s profile and reputation. The following is a review of the regulatory history of Pruco Securities LLC.
The SEC Sanctions Pruco Securities for Breach of Fiduciary Duty
December 2020: The Securities and Exchange Commission on December 23, 2020 reportedly charged Pruco Securities with violations in the firm’s wrap fee programs. The firm agreed to pay $18 million in disgorgement, interest and penalties, as well as a censure and cease-and-desist.
The regulator alleged Pruco failed to perform ongoing monitoring to determine whether the “wrap fee” program was still suitable for clients. “Wrap fee” refers to a program in which clients pay a singular asset-based fee for investment advice, brokerage services and trade execution. Pruco also allegedly charged certain fees in client accounts, contrary to disclosures. Pruco Securities to pay $18 Million for Overcharges
Illinois Fines Pruco Securities for Failure to Supervise Variable Annuities Sales
April 2017: The Illinois Securities Department reportedly fined Pruco Securities $750,000 for supervisory failures in connection with variable annuities sales. The firm allegedly failed to supervise representatives in their sales of variable annuities from 2013 to 2016. Pruco agreed to pay restitution to harmed investors in addition to the fine.
FINRA fines Pruco Securities over Mutual Fund Sales
December 2012: FINRA ordered Pruco Securities to pay more than $10.7 million in restitution, plus interest, to customers who placed mutual fund orders with Pruco via facsimile or mail from late 2003 to June 2011 and received an inferior price for their shares. FINRA also fined Pruco $550,000 for its pricing errors and for failing to have an adequate supervisory system and written procedures in this area. FINRA fines Pruco Securities over mutual fund sales
Broker Misconduct and Customer Complaints
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. 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.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. There have been several cases of registered representatives employed by Pruco Securities LLC who were allegedly involved in broker misconduct and fraudulent activities.
FINRA Bars James Pelletiere after Allegations of Misconduct
October 2023: FINRA barred James Pelletiere (CRD#: 2628708) of Downers Grove, IL, from the securities industry. Pelletiere reportedly refused to provide information and documents requested by FINRA. The regulator was reportedly investigating whether Pelletiere had misused customer funds and accepted cash payments from a client while he was affiliated with Pruco Securities. James Pelletiere, Pruco Securities Advisor, Barred by FINRA
Jermaine Benjamin Allegedly Misappropriated Funds
June 2023: FINRA reportedly barred financial advisor Jermaine Benjamin (CRD #6152653) from the securities industry. Pruco reportedly disclosed that it had received a written customer complaint alleging unauthorized transactions and misappropriation/defalcation by Benjamin while he was associated with the firm. Jermaine Benjamin Barred by Securities Regulator
Former Pruco Broker Roger Duval Allegedly Converted Customer Funds
September 2020: FINRA reportedly barred Roger Duval from associating with any FINRA member at any time after he allegedly converted approximately $130,000 from elderly customers for his own personal use. According to FINRA, “Duval convinced the elderly customers to establish and maintain brokerage accounts at a FINRA member firm, away from his employer member firms. Duval used the customers’ login credentials to access these accounts and wrote himself checks without their knowledge or authorization. Duval deposited these checks into his personal checking account and then transferred some of these funds into his personal brokerage account.” Broker Roger Allan Duval Barred from Securities Industry
Ex-Pruco Broker Winston Turner has 25 Customer Complaints
February 2016: FINRA barred Pruco Securities broker Winston Wade Turner for alleged misconduct related to variable annuity transactions. He reportedly has 25 customer complaints on his broker record for allegations of misrepresentations and unsuitable variable annuity recommendations. Winston Wade Turner Barred from Securities Industry
FINRA’s Supervision Rules
All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct. 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.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest dispute resolution forum in the securities industry. In fact, FINRA Dispute Resolution is the forum for almost all disputes between investors, brokerage firms and individual brokers. This is mainly because the vast majority of brokerage firms have mandatory arbitration clauses in their account agreements that require investors to file their disputes through FINRA.
National Securities Attorneys
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors who were defrauded by their financial advisors. For more information, please visit our website, www.whitesecuritieslaw.com.
If you have suffered losses investing with Pruco Securities LLC and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
Tags: FINRA, Pruco Securities LLC, SEC sanctions Last modified: November 2, 2023