broker error in transfer of funds

[chris]

HCE has personal account and directed investment account at same brokerage firm. HCE directed broker to sell investment x in directed investment account. Broker executed sale of investment x in directed investment account. Meanwhile, at some point, HCE had instructed broker to purchase investment y in personal account. Broker transferred sales proceeds from HCE's directed investment account into HCE's personal account inadvertently and the funds were used to purchase investment y in HCE's personal account. Although HCE signed authorization to transfer funds, HCE was not aware that funds were being moved from directed investment account to personal account.

Any advice as to how to correct this error under APRSC or otherwise?

[Alonzo]

Put the money back in the plan asap.

You have a prohibted transaction, which is a taxable event, not an APRSC issue. Considering that it was the broker who made the blunder, you should get him to pay the tax.