Finra bars former Allstate broker for using employee’s IRA money

Kari Ann Buckles kept $2,264 she was supposed to deposit, Finra says.

The Financial Industry Regulatory Authority Inc. has barred former Allstate Financial Services representative Kari Ann Buckles for keeping money she had promised to deposit into an IRA account for an employee.

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In 2015, Ms. Buckles’ Allstate insurance agency agreed to withhold 3% of one employee’s weekly paycheck and remit it a Savings Incentive Match Plan for Employees (SIMPLE) IRA account. Ms. Buckles was obligated to remit those withholdings within 30 days of the end of the month, which she did through January 2016, Finra said in a letter of acceptance, waiver and consent.

But Ms. Buckles then stopped remitting the funds for over two years, without informing the employee. She also did not segregate the withholdings from other agency funds, which were used to pay for business expenses as well as some of Ms. Buckles’ personal expenses. As of Dec. 31, 2017, Ms. Buckles had failed to contribute about $2,264 to the SIMPLE IRA account. But after the employee discovered the nonpayment, Ms. Buckles remitted the unpaid withholdings to the account.

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Allstate discharged Ms. Buckles in September 2018.