The securities lawyers of Gana LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Charles Laubach (Laubach). According to BrokerCheck records Laubach has been subject to at least four customer complaints and two employment separations for cause. The customer complaints against Laubach alleges securities law violations that including unauthorized trading among other claims.
In February 2015, Laubach was terminated by Ameriprise Financial Services, Inc. (Ameriprise) on allegations that Laubach violated company policies by soliciting certain equity securities and mismarking trade tickets. In March 2016 Laubach was terminated by Chapin Davis Investments (Chapin Davis) for mis-marking transactions tickets and failure to follow written supervisory procedures.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. Advisors are also not allowed to engage in unauthorized trading. Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). These rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.
Laubach entered the securities industry in 1983. From 2004 through September 2012, Laubach was associated with Wells Fargo Advisors, LLC. From September 2012 until February 2015 Laubach was associated with Ameriprise. Thereafter, from March 2015 until March 2016 Laubach was associated with Chapin, Davis. Finally, since March 2016 Laubach has been associated with Capital Portfolio Management, Inc. out of the firm’s Timonium, Maryland office location.
The number of events listed on Laubach brokercheck is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.
The investment fraud attorneys at Gana LLP represent investors who have suffered securities losses due to the mishandling of their accounts. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.