← Broker database 2021-11-02
Patrick Pierre-Louis Barred for Converting Customer Funds for Personal Real Estate Investment Scheme
According to FINRA, Patrick Pierre-Louis was barred from association with any FINRA member in all capacities for converting approximately $9,695 from a customer by falsely claiming he would invest the funds in a real estate opportunity.
Pierre-Louis convinced the customer to transfer $3,000 to his personal bank account by representing that he would invest the funds in a real estate investment away from his firm and would pay the customer a 15 percent rate of return. This was the first of multiple fraudulent solicitations. Later, Pierre-Louis convinced the same customer to make two additional transfers totaling $4,950 for the same purported investment.
After Pierre-Louis left his firm and became associated with a new firm, the customer did not open an account at the new firm. Nevertheless, Pierre-Louis continued his fraudulent scheme and persuaded the customer to make an additional transfer of $1,745 to his personal bank account for the same fictitious real estate investment. In total, Pierre-Louis obtained $9,695 from the customer under false pretenses.
Pierre-Louis never invested any of the customer's funds in real estate or any other investment. He provided no interest payments as promised and never repaid any portion of the principal to the customer. Instead, Pierre-Louis converted all of the funds for his own personal use.
This case represents a classic example of conversion and fraud. By soliciting investment funds with false promises, directing money to his personal account rather than through proper firm channels, and using the money for his own benefit without making any investment, Pierre-Louis violated fundamental duties of trust and honesty that are essential to the broker-customer relationship.
Investors should be extremely wary of any investment opportunity that is conducted away from the firm, particularly when a broker requests that funds be sent to a personal bank account. Legitimate investments go through proper firm channels with appropriate documentation, supervision, and regulatory oversight. Promises of high fixed returns like 15 percent are also red flags for potential fraud. Before investing, customers should verify that investments are properly documented, held in accounts at reputable institutions, and approved by the representative's firm. When representatives solicit off-the-books investments, investors should report this immediately to the firm and to FINRA.