On April 2nd, 2018, the Financial Industry Regulatory Authority (FINRA) announced that Frederick David Holloway (CRD#: 248814), a registered broker based in Easton, Maryland, has been named as the respondent in a securities complaint.
Mr. Holloway is the owner of Holloway & Associates Inc., a Maryland-based brokerage firm.
Here, our securities fraud lawyers provide a brief overview of the allegations against Mr. Holloway. All information contained within this article comes directly from FINRA’s records.
For full information regarding this case, please refer to the official complaint: FINRA Disciplinary Proceeding No. 2016050025401.
The Allegations Against Frederick David Holloway
The alleged misconduct in this case occurred between January of 2013 and June of 2016. According to the FINRA complaint, Mr. Holloway recommended that investors exchange one type of deferred variable annuity (VA) to an alternative type of deferred variable without any reasonable basis.
More specifically, FINRA alleges that Mr. Holloway instructed investors to switch from a lower cost VA to a high cost VA in 43 different circumstances. As a result, these investors were pushed into unsuitable investments.
While Mr. Holloway made additional money in commissions, his customers actually ended up in a worse financial position, paying surrender charges and higher fees for a fundamentally similar investment.
FINRA alleges that Mr. Holloway violated rules 2330 and 2010. In addition, the investigators believe that Mr. Holloway falsified documents and altered paperwork to execute these transactions. Shockingly, there are also allegations that Mr. Holloway had his assistant impersonate customers on certain phone conversations.
As of early May of 2018, this case is still pending. No sanctions have yet been issued against Frederick David Holloway.
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