Did you lose money investing with Frederick Holloway (CRD# 248814)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Frederick Holloway. If you suffered losses investing with Frederick Holloway, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of September 25, 2020, Frederick Holloway’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
1 Customer Dispute(s)
1 Regulatory Event(s)
See FINRA Letter of Acceptance, Waiver and Consent No. 2016050025401 Second Amended Complaint
See FINRA Letter of Acceptance, Waiver and Consent No. 2016050025401 OHO Decision
UPDATE 9/25/2020: According to FINRA’s July 2019 Disciplinary Actions: “Frederick David Holloway (CRD #248814, Easton, Maryland) May 29, 2019 – An OHO decision became final in which Holloway was barred from association with any FINRA member in all capacities. The sanction was based on findings that Holloway cheated on continuing education courses by having his secretary complete his coursework. The findings stated that Holloway claimed credit for several continuing education courses necessary for his license to sell variable annuities in the state of Maryland. The findings also stated that Holloway withheld documents and produced falsified documents in connection with a FINRA investigation. FINRA directed Holloway to obtain information from his customers; however, before production, he caused the alteration of several documents including several annuity application documents that were altered to include investment time horizons. The findings also included that Holloway failed to meaningfully compare the benefits, fees and surrender costs associated with variable annuities being exchanged, or document any suitability analysis, in connection with variable annuity exchanges. Holloway recommended that his clients shift their investments from one annuity to another at a cost, despite the similar features of the two products. To justify the substantial surrender costs incurred as a part of the transactions, Holloway recommended to several clients that surrender costs would be offset by the bonus feature of the new annuity, when in fact the bonus feature came at the price of increased annual fees for the client. As a result of these switches, Holloway earned $214,989 in commissions, while his clients paid a total of $114,470 in surrender fees. FINRA found that Holloway misused and falsified documents in connection with variable annuity exchanges. Holloway caused customers to sign blank application documents, and later, either he or his secretary filled out the blank areas of the forms and then submitted the documents for processing without further review by the customer. Holloway also obtained a signed, uncompleted application for an annuity exchange and photocopied that signature page for use in other transactions for that customer. Holloway, or his secretary acting at his direction, entered customer initials next to changes made to forms returned by insurance companies for incorrect or missing information without written authorization. FINRA also found that Holloway directed his secretary to impersonate clients on telephone calls to financial institutions to facilitate fund transfers for variable annuity purchases and, on other occasions, Holloway and his secretary claimed to be employees of an insurance company on phone conversations when seeking medical information about their customer to facilitate annuity purchases. In addition, FINRA found that Holloway filed a Uniform Application for Investment Adviser Registration (Form ADV) overstating his adviser activity. The Form ADV claimed that he provided investment advisory services for as many as 250 clients and financial planning services for up to 50 clients in the prior year, reflecting as much as $5 million in investments. In fact, Holloway had no investment advisory clients, provided no fee-based financial planning and had made no investments along those lines for several years. (FINRA Case #2016050025401 Second Amended Complaint and OHO Decision)
Current and Previous Registrations
02/15/1982 – 02/14/2019 HOLLOWAY & ASSOCIATES, INC. (CRD#:10349) EASTON, MD
11/19/1989 – 05/03/1999 ROYAL ALLIANCE ASSOCIATES, INC. (CRD#:23131) JERSEY CITY, NJ
11/27/1985 – 11/19/1989 INTEGRATED RESOURCES EQUITY CORPORATION (CRD#:6403)
12/30/1980 – 04/28/1982 CARDELL & ASSOCIATES, INCORPORATED (CRD#:7700)
09/04/1973 – 08/01/1980 IDS LIFE INSURANCE COMPANY (CRD#:6321)
09/04/1973 – 08/01/1980 IDS MARKETING CORPORATION (CRD#:6363)
09/04/1973 – 08/01/1980 INVESTORS DIVERSIFIED SERVICES, INC. (CRD#:6320)
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Frederick Holloway and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.