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FINRA Recommends Disciplinary Action Against Allen Blankenship

Allen Blankenship (CRD #: 2842335), a broker registered with The Strategic Financial Alliance, was recently investigated by FINRA, according to his BrokerCheck record, accessed on January 3, 2023. If you want to learn more about his alleged conduct as a broker, read on.

FINRA Investigation

On November 2, 2022, FINRA recommended that disciplinary action be brought against Allen Blankenship, alleging that he committed the following forms of misconduct:

  • Made unsuitable short-term mutual fund trades and executed these transactions in such a way that clients did not receive the benefit of mutual fund breakpoints
  • Executed discretionary mutual fund transactions without written authorization
  • Caused his firm to keep inaccurate books and records by mismarking mutual fund purchases as unsolicited
  • Circumvented firm procedures regarding mutual fund transactions

Investors may be entitled to breakpoint discounts when purchasing mutual funds from a previously purchased family of Class A mutual funds. Brokers are required to inform their clients of Breakpoint discounts by FINRA Rule 2342

FINRA alleged that Allen Blankenship violated FINRA Rules 2111, 2010, 3260(b), and 4511, as well as NASD Rule 2510(b).

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must use the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 3260

FINRA Rule 3260(b) requires brokers to receive written authorization from their clients before engaging in discretionary trading. Discretionary accounts must also be approved by the firm before this trading can occur.

FINRA Rule 4511

FINRA Rule 4511 requires that firms maintain accurate books and records.

Termination from Independent Financial Group

On October 14, 2019, Allen Blankenship was fired from Independent Financial Group after allegedly violating firm policy concerning the submission of required documents for certain mutual fund transactions and failing to ensure that clients were receiving the benefit of mutual fund breakpoints.

Background Information

Allen Blankenship has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination
  • Series 24 – General Securities Principal Examination

Allen Blankenship is a registered broker in nine states and a registered investment adviser in Pennsylvania.

He has also worked for the following firms:

  • Independent Financial Group (CRD#:7717)
  • Summit Financial Group (CRD#:109485)
  • Summit Brokerage Services (CRD#:34643)
  • LPL Financial Corporation (CRD#:6413)
  • Securities America Advisors (CRD#:110518)
  • Securities America (CRD#:10205)
  • Signator Investors (CRD#:468)
  • John Hancock Mutual Life Insurance Company (CRD#:5181)

Kurta Law Can Help

If you worked with Allen Blankenship and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.