Key Takeaway: Former Kestra Investment Services advisor Brian R. Thomas (CRD# 4243411) of Bloomfield Hills, Michigan has been suspended by FINRA and fined $5,000 after he borrowed $50,000 from a firm customer without written notice or approval, then was discharged by Kestra in April 2026. Thomas repaid the loan with interest, but the incident adds to a growing pattern of financial advisors violating basic client trust rules.

Who Is Brian R. Thomas?

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Brian R. Thomas is a former broker and investment adviser registered in the securities industry for 25 years. According to his FINRA BrokerCheck report, Thomas (CRD# 4243411) is currently suspended by FINRA and is not registered with any state or broker-dealer.

Thomas spent the majority of his career in Michigan, working for a series of prominent firms:

Kestra Investment Services, LLC (CRD# 42046) — Bloomfield Hills, MI — January 30, 2020 to May 1, 2026 (6 years)
Cambridge Investment Research, Inc. (CRD# 39543) — Troy, MI — April 17, 2009 to February 11, 2020 (10 years)
Merrill Lynch, Pierce, Fenner & Smith (CRD# 7691) — Bloomfield Hills, MI — January 6, 2006 to April 21, 2009 (3 years)
UBS-investor-losses/”>UBS-investor-losses/”>UBS Financial Services (CRD# 8174) — Weehawken, NJ — September 23, 2002 to January 18, 2006 (3 years)
Merrill Lynch (CRD# 7691) — New York, NY — September 15, 2000 to October 2, 2002 (2 years)

He was most recently affiliated with Kestra Investment Services, a Bloomfield Hills, Michigan-based broker-dealer, until his termination in April 2026.

The Allegations: What FINRA Found

On May 15, 2026, FINRA issued a final regulatory action against Thomas via an Acceptance, Waiver & Consent (AWC) — a settlement in which Thomas neither admitted nor denied the findings, but agreed to the sanctions.

The $50,000 Loan

According to FINRA’s findings, Thomas borrowed $50,000 from a Kestra customer who was also a personal friend — though the friendship predated the customer’s status as a client. The key violations were:

No prior written notice to Kestra
No approval from Kestra
No written loan agreement
No repayment terms discussed
Funds used for personal expenses

FINRA’s rules and most firm policies strictly prohibit representatives from borrowing money from customers who are not immediate family members. The purpose of this rule is to prevent conflicts of interest, undue influence, and situations where a client feels pressured to lend money to the person managing their investments.

Thomas repaid the full amount with interest, but the fact that the loan was undocumented, undisclosed, and violated firm policy formed the basis for both FINRA’s regulatory action and his discharge from Kestra.

Sanctions

Fine: $5,000
Suspension: 1 month (May 15, 2026 to June 14, 2026)
Scope: All registration capacities

The suspension is notably brief — just one month — which reflects that the loan was repaid and involved no direct client financial harm. However, the fact that it happened at all is a significant red flag for any investor who worked with Thomas.

Employment Termination at Kestra

Thomas’s regulatory suspension was preceded by his discharge from Kestra Investment Services on April 16, 2026.

According to BrokerCheck, the termination was categorized as a “Discharged” separation after allegations, with Kestra stating:

“The representative’s termination resulted from engaging in a personal loan transaction with a friend who was also a Kestra client, which constituted a violation of the firm’s policy that prohibits representatives from borrowing or lending money to customers.”

This language — “engaging in a personal loan transaction” — is consistent with the subsequent FINRA findings and suggests Kestra acted promptly after discovering the violation.

Additional Disclosure: $99,500 Tax Lien

Thomas’s BrokerCheck record also shows a judgment/lien filed on November 10, 2025 for $99,500 in federal tax debt.

In his comment on the disclosure, Thomas stated that he contacted the IRS and entered a payment plan after being notified of the debt, but a lien was issued anyway. He indicated an intent to pay the full amount in January 2026.

While a personal tax lien is not the same as a customer-facing securities violation, it is relevant for investors assessing an advisor’s overall financial responsibility and transparency. Multiple financial stressors — a large tax debt and an undisclosed personal loan — can indicate circumstances that may affect professional judgment.

What This Means for Investors

For investors who worked with Brian R. Thomas, this case raises several important questions:

1. Were You a Kestra Client During 2020–2026?

If you were a client of Thomas at Kestra Investment Services during his tenure, it is worth reviewing your account history for any unusual activity, unexplained fees, or transactions you did not authorize. While FINRA’s findings relate specifically to the personal loan, financial stress and boundary violations can be associated with broader misconduct.

2. Did You Ever Lend Money or Extend Credit?

While the disclosed loan involved a friend who happened to be a client, advisors under financial pressure may seek funds from other clients. If you ever lent money to Thomas, transferred funds to him, or were asked to do so, you should consider speaking with an attorney.

3. Review Your Account Statements

Even without evidence of direct harm, investors should review statements for:
– Excessive trading or churning
– Unauthorized transactions
– Unsuitable investment recommendations
– Fees or commissions that seem disproportionate to your account size

Your Rights If You Lost Money

If you were a client of Brian R. Thomas or any advisor at Kestra Investment Services and believe you suffered investment losses due to misconduct, you may have the right to recover through FINRA arbitration.

FINRA arbitration is a private dispute resolution process that allows investors to seek damages from broker-dealers and their registered representatives. Most brokerage account agreements include a mandatory arbitration clause, meaning you typically cannot sue in court — but you can still recover your losses.

To explore your options, call 1-888-885-7162 for a free consultation with an attorney who can evaluate your account history and determine whether you have a claim.

Sources

Disclaimer: This article is for informational purposes only and does not constitute legal advice. The facts described are based on publicly available FINRA BrokerCheck records and news reporting. No representation is made that the outcome described here is typical or predictive of any individual case.

Disclaimer: The information contained in any post on this website is derived from publicly available sources and is not guaranteed as to accuracy and often involves allegations which may or may not be proven at some point in the future.  All posts are believed to be accurate as of the time of original posting, but the accuracy and details are subject to and expected to change over time and which may contain opinions of the author at the time posted. 

Former Bloomfield Hills, MI Advisor Suspended by FINRA Over Undisclosed $50,000 Customer Loan