On May 9, 2018, FINRA announced that it barred securities broker Vaughn Lee Andrews-McKay from associating with firms registered with FINRA. FINRA (Financial Industry Regulatory Authority, Inc.) registers and regulates securities brokers and brokerage firms.
In a Letter of Acceptance, Waiver and Consent (AWC), FINRA stated it barred Andrews-McKay after finding he converted funds from two of his clients. According to the AWC, Andrews-McKay convinced his clients “to write personal checks to him that he claimed he would use to satisfy certain financial obligations of theirs. Instead, McKay deposited the checks into a bank account he controlled, and [he] used the funds for his own personal use.”
FINRA alleges Andrews-McKay stole more than $47,000 of his clients’ funds between January 2017 and October 2017. Andrews-McKay agreed to be barred by signing the AWC, which states he does not admit or deny FINRA’s findings.
Vaughn Lee Andrews-McKay registered with Pruco Securities, LLC in May 2015 where he worked until Pruco terminated him on May 1, 2018. Pruco publicly disclosed that it discharged Andrews-McKay because he “misappropriated funds from two clients, forged a client’s signature on multiple checks taken from her, did not disclose a gift from a customer, and did not disclose an outside business activity.”
Brokerage firms have a duty to reasonably supervise their brokers to ensure they do not violate securities rules. This includes ensuring brokers do not misappropriate customers’ funds.
Customers can pursue claims to recover their losses from brokerages who did not reasonably supervise their brokers. Moreover, courts and arbitrators may hold firms jointly responsible for their brokers’ misconduct.
If you suffered losses while investing with Vaughn Lee Andrews-McKay, contact Marquardt Law Office LLC to speak with a securities attorney and receive a free case evaluation.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.