FINRA Suspends Broker Lorene Fairbanks For Improper Financial Relationship With Client And Improper Communications With Client

Lorene Fairbanks (CRD# 2788572) (aka “Lorene Fairbanks Miller,” “Lori Miller”) has been suspended by FINRA for five months due to allegations of an improper financial relationship with a client and improper communications. Her last registered employment was with Ameriprise Financial Services (CRD# 6363). She is not currently registered with any financial institution.

Fairbanks’ previous registration history includes:

• Ameriprise Financial Services (CRD# 6363), of Canfield, OH, from 11/20/2014 to 06/09/2017.
• Merrill Lynch Pierce Fenner & Smith, Incorporated, (CRD# 7691) of Canfield, OH, from 08/17/2006 to 03/19/2012
• Citigroup Global Markets (CRD# 7059) of Canfield, OH, from 08/29/1996 to 08/25/2006

Fairbanks was allowed to resign from Ameriprise after it was alleged she borrowed money from a customer to purchase a house. The customer in question was also a personal friend of Fairbanks, and agreed to loan her $75,000 for the purchase. The loan was not documented, and no repayment schedule, interest rate or other key loan terms were created. Fairbanks did not seek approval nor notify Ameriprise of this loan. The customer requested repayment five months later, and Fairbanks complied. At the time of the loan, Ameriprise prohibited “associated persons” from borrowing money from customers.

Additionally, around the time of the loan, Fairbanks sent text messages to this same client about various securities matters, including transactional details and investment advice. The client also sent complaints in these texts about Fairbanks’ trading practices. Ameriprise prohibited conducting business by text message during this period, and Fairbanks failed to provide these texts to the firm for oversight. These texts contravene Ameriprise’s communications policies. The firm is then in default for their communications reporting.

With both of these allegations, Fairbanks violated FINRA’s Rules 2010 and 3240. She has been suspended from 02/05/2018 through 07/04/2018, and was fined $7,500. Fairbanks is prohibited from associating with any FINRA member in any capacity (including a clerical and/or ministerial capacity.) She signed a letter of Acceptance, Waiver & Consent (AWC) on 12/28/2017, and accepted by FINRA on 01/24/2018.

While under review for these allegations, and suspended by FINRA on 05/11/2017, Fairbanks was allowed to resign from Ameriprise on 05/18/2017. She is not currently registered as a broker or investment advisor.

Fairbanks has several previous disclosures during her tenure as a broker/investment advisor.

• 11/1/2017—customer alleges “misrepresentation and unsuitable investment recommendations” on the part of Fairbanks from August 2006 to March 2012. This case is currently pending.
• 07/06/2017—customer alleged Fairbanks “misrepresented risks associated with options trading and concentrated the investments in high risk options.” The client requested damages in the amount of $5,000; this client received a settlement amount of $125,000.
• 04/02/2015—customer alleged Fairbanks engaged in “churning, breach of contract, breach of fiduciary duty, misrepresentation, negligence, mismarking orders, and negligent supervision between 2004 and August 2006.” The customer requested damages of $100,000; the firm denied all allegations and settled the case for $15,000 to avoid protracted litigation.
• 09/03/2014—FINRA suspended Fairbanks for 30 days and fined her $10,000. The allegations included making discretionary trades on behalf of her customers without their written permission. Additionally, Fairbanks mis-marked tickets, indicating that the solicited orders were unsolicited, causing reporting issues for the firm. She neither admitted nor denied the findings, agreed to the sanctions and signed an AWC letter to FINRA.
• 01/23/2014—customer dispute alleging Fairbanks engaged in excessive and unauthorized trading, “misrepresentation and omission of material facts from August 2006 through August 2011.” Requested damages were $100,000. This case was dismissed.
• 10/09/2012—customer dispute alleging Fairbanks engaged in “unsuitable investment recommendations, unauthorized trading and misrepresentation from April 2010 to September 2010.” The customer requested damages of $140,000; the firm settled the case for $72,000.
• 08/09/2012—customer dispute alleging Fairbanks engaged “in unauthorized trading and unsuitable investment recommendations from October 2010 to February 2011.” The firm settled this case for $11,050.
• 02/21/2012—Fairbanks was dismissed by Merrill, Lynch, Pierce, Fenner & Smith (CRD# 7691) after allegations of “conduct including taking discretion in client accounts and mismarking orders.”
• 04/04/2011—customer dispute alleged that Fairbanks engaged in “unauthorized trading, excessive trading, unsuitable investment recommendations and misrepresentation.” Requested damages were $262,541.00, and the firm settled with the client for
  $104,000.00.
• 08/20/2004—the client’s attorney offered allegations against Fairbanks of “unsuitable investments – February 2002 through July 2002” and requested damages of $30,000. This case was dismissed.

Have you had dealings with Lorene Fairbanks, and would like to review your accounts? Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct.  Most cases handled on a contingent fee basis. This means that you won’t any pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.