December 10, 2020
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by Philip Simone, a former AXA Advisors, LLC (AXA) general securities representative in Irvine, California from May 2017 to April 2019.
According to his FINRA BrokerCheck report, Simone was associated with two additional member firms within the last ten years: Centaurus Financial, Inc. in Costa Mesa, California from August 2013 to May 2017 and One America Securities, Inc. in Santa Ana, California from July 2009 to March 2013.
FINRA alleges in the AWC that from July 2017 through February 2019, Simone borrowed $133,000 from two elderly AXA customers without obtaining prior approval from the firm. Specifically, Simone allegedly received six loans totaling $43,000 from one elderly customer between July 2017 and February 2019, with a promise that the funds would be returned in full with a 12% interest rate within one year. According to the AWC, although these loans were not documented in writing, the second customer documented the loan in two promissory notes dated December 20, 2018 and February 13, 2019. The notes specified that the loan would be repaid in full within 120 days with 15% interest. Based on the foregoing, Simone violated FINRA Rules 3240 and 2010.
FINRA further claims that Simone created falsified securities documents and submitted them to AXA and falsified documents for a personal mortgage application that he submitted to third-party bank. Thus, Simone further violated FINRA Rule 2010.
Without admitting or denying the allegations made against him, Philip Simone consented to an eleven-month suspension from associating with any FINRA member firm in any capacity and a $12,500 fine. Additionally, Simone consented to paying $35,000 restitution, plus interest to one of the customer that loaned him $43,000.