According to FINRA, Billy Pascal Stanage Jr. was barred from association with any FINRA member in all capacities for refusing to provide documents and information requested by FINRA in connection with its investigation of circumstances surrounding his termination from his member firm.

Stanage's firm filed a Form U5 stating that it had discharged him for failing to obtain firm approval for an outside business activity. Subsequently, the firm filed an amended Form U5 disclosing that its internal review determined that Stanage had obtained a loan from a client without seeking firm approval.

Borrowing money from clients is a serious compliance violation that creates conflicts of interest and potential for abuse. Firms must review and approve such arrangements to ensure they are appropriate and do not harm customers. When representatives refuse to cooperate with investigations into such conduct, it prevents regulators from determining the facts and protecting other potential victims.