The Financial Industry Regulatory Authority has barred a former Ameriprise general securities representative for taking more than $2.2 million in loans from two clients.
According to FINRA's order, from September 1994 through June 2020, Eric A. Dupre was registered as a GSR through associations with six current or former FINRA member firms, including Raymond James and UBS.
In June 2020, Dupre — who is based in San Antonio, Texas — became registered as a GSR with Ameriprise Financial Services, LLC.
On Jan. 16, 2024, Ameriprise filed a Form U5, disclosing that Dupre had been terminated effective Dec. 26, 2023, “due to [a] violation of company policy related to borrowing from clients.”
From September 2022 through February 2023, Dupre borrowed at least $2,236,000 from two clients without providing prior notice to, or obtaining written approval from, his FINRA member firm, in violation of FINRA Rules 3240 and 2010, the order states.
"During the time period, Dupre borrowed money from two of his customers through loans that were not documented or secured by any collateral," the order states.
First, in September 2022, Dupre borrowed $65,000 from a married couple, who were his customers, which Dupre repaid in December 2022, the order states.
Second, from September 2022 through February 2023, Dupre borrowed at least $2,171,000 through a series of loans from a different customer.
"At the time he loaned the funds to Dupre, the customer was 77 years old," the order states. "Dupre told the customer that he would pay back the principal of the loan plus an additional amount."
Dupre, FINRA adds, "needed the loans because he was experiencing financial difficulties."
To loan "a significant portion of the funds to Dupre, the customer borrowed funds on margin from his Ameriprise account, which the customer transferred to a personal bank account before loaning to Dupre. As a result, the customer incurred substantial margin debt," the order continues.
"Given his financial circumstances at the time he borrowed the money from the customer, Dupre did not have a reasonable expectation of repaying the loans, and to date, Dupre has not repaid any portion of the funds loaned to him by the customer," FINRA said.
According to a statement from Ameriprise: "Mr. Dupre violated firm policy and was terminated. He circumvented our controls by conducting his activity away from the firm, and his actions were wholly inconsistent with our code of conduct and strict compliance standards."
Credit: FINRA
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