(CRD #2842335, King of Prussia, Pennsylvania)

November 10, 2025 – D. Allen Blankenship appealed an OHO decision to the NAC. Blankenship was barred from association with any FINRA member in all capacities. The sanction was based on the findings that Blankenship engaged in a pattern of unsuitable trading in Class A mutual fund shares. The findings stated that Blankenship sold shares that had been held a year or less. Blankenship also engaged in mutual fund switching, in which he used the proceeds from the sale of one mutual fund to switch to a mutual fund in a different fund family, thereby imposing a new sales load on the customer and garnering a new commission for himself. Blankenship had no reasonable basis for believing that the short-term trading and mutual fund switching were suitable for any customer. In addition, because most of Blankenship’s mutual fund purchases (96 percent) were made in increments below $20,000, his customers also missed breakpoint discounts to which they were entitled. The overall result of all these activities was that customers paid more than they should have for their investments, and Blankenship received more in compensation than he should have. Such a pattern of trading is unsuitable for any investor. The findings also stated that Blankenship facilitated the unsuitable trading by circumventing his member firm’s supervision, which was unethical. Blankenship broke up almost all his mutual fund purchases into multiple consecutive transactions of less than $20,000. The firm’s automated system for flagging mutual fund transactions for review was not triggered by purchases below $20,000. In addition, Blankenship failed to complete and submit to the firm for review and approval a form it required him to use to ensure that customers received appropriate disclosures and pricing on their transactions. The findings also included that Blankenship caused his firm’s books and records to be inaccurate by falsely marking mutual fund transactions as unsolicited when they were not. The sanction is not in effect pending the review. (FINRA Case #2019064333401) If you have suffered losses as a result of D. Allen Blankenship’s act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by D. Allen Blankenship. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at  (813) 226-3372 or email Matthew Schwartz directly at mschwartz@tslfirm.com.