David Gibbs Suspended by FINRA for Alleged Loan from Client

David Gibbs (CRD #: 2917334), a broker registered with J. Alden Associates, allegedly borrowed money from a client, according to his BrokerCheck record, accessed on November 23, 2024. Investors may have also worked with him through Alden Investment Group. Details concerning the allegations are provided below. 

Suspension by FINRA

On October 2, 2024, David Gibbs consented to the entry of findings that he allegedly borrowed $780,000 from a client without notifying or obtaining approval from his firm, MML Investors Services.

According to a Letter of Acceptance, Waiver & Consent (AWC), MML Investors Services’ policies allegedly only allowed brokers to borrow money from clients if they were immediate family members or if the client was a financial institution engaged in certain types of business. In either case, the firm’s policies allegedly required prior written approval for any loans from clients.

In March 2022, David Gibbs allegedly borrowed $780,000 from a personal friend who was also his client, in the form of a promissory note requiring monthly payments at 3.5% interest for a 30-year term.

He allegedly failed to seek approval from his firm, and instead claimed on compliance attestations in July 2022 and 2023 that he had not borrowed money from clients other than immediate family members.

The AWC concluded that these allegations constitute violations of FINRA Rules 3240 and 2010.

FINRA Rule 3240

FINRA Rule 3240 describes the limited circumstances under which brokers may borrow from or lend to clients, such as loans between immediate family members.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of FINRA Rule 3240 and firm policies may also violate this rule. 

Sanctions

David Gibbs consented to the following sanctions:

• 3-month suspension from associating with FINRA members
• $5,000 fine

His suspension began on October 21, 2024, and will end on January 20, 2025. You can access the full AWC here.

Termination from MML Investors Services

On August 31, 2023, MML Investors Services fired David Gibbs following allegations that he violated firm policy concerning obtaining a loan from a client.

Background Information 

David Gibbs has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 

David Gibbs is a registered broker in six states and a registered investment adviser in New Jersey, New York, and Pennsylvania.

He has registered with the following firms: 

• MML Investors Services (CRD #: 10409) 
• MSI Financial Services (CRD #: 14251) 
• New England Securities (CRD #: 615) 

Kurta Law Can Help

If you worked with David Gibbs and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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 that 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.