U.S. rep allegedly borrowed from client for used-car business

FINRA has imposed a four-month suspension on Marco Antonio Daniel for allegedly taking out 10 loans from one customer between August 2009 and May 2010, reports brokeandbroker.com.

Daniel allegedly borrowed $19,015, says FINRA, and Daniel allegedly failed to mention he’d taken the loans on an annual compliance form in 2010. Further, says FINRA, Daniel allegedly failed to repay the loans until 2015, after the customer complained.

FINRA also alleges that Daniel failed to disclose an outside business activity to his employer firm. In the Letter of Acceptance, Waiver and Consent (AWC), FINRA says Daniel “purchased pre-owned automobiles at a dealer auction with the intent to resell the automobiles for profit” between August 2009 and June 2010. Failing to disclose an outside business activity violates NASD Rule 3030, which was retired in 2010, and FINRA Rule 2010. The AWC also notes “he used some of the funds he borrowed from the customer to engage in this activity.”

No monetary sanctions have been imposed.

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