Articles Tagged with broker theft attorney

shutterstock_156764942-200x300The law offices of Gana Weinstein LLP are currently investigating multiple claims that advisor Robert High (High) has engaged in a misappropriation scheme.  High, formerly registered with First Financial Equity Corporation (First Financial) and operating out of Scottsdale, Arizona, has been accused by a customer of engaging in securities fraud and misappropriating funds.

In February 2019 the Federal Bureau of Investigation (FBI) opened an investigation into High for alleged misappropriation of funds and forgery.  Shortly thereafter First Financial terminated High claiming that he was in violation of firm’s policies.  In March 2019 a client filed a complaint alleging that High misappropriated funds causing $146,000 in funds.  The claim is currently pending.

Also in March 2019, FINRA suspended High for failing to respond to the regulator’s requests for documents and information.  If High continues to fail to respond he will be barred from the securities industry.

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shutterstock_143685652-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Christopher Hellman (Hellman), formerly associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Hellman consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information during its investigation.  FINRA found that Merrill Lynch terminated Hellman’s registration for conduct including failure to adhere to firm standards regarding selling away and failure to fully disclose participation in outside business activities.

The providing of loans, misappropriating funds through false pretenses, or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Hellman’s activities.  Hellman’s disclosures do not include any outside business activities (OBAs) disclosures.

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shutterstock_46993942-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor John Schmidt (Schmidt), formerly associated with Wells Fargo Advisors Financial Network, LLC (Wells Fargo) in Dayton, Ohio has been accused by the Securities and Exchange Commission (SEC) of misappropriating over $1.16 million from at least seven clients.

In September 2018 the SEC filed a complaint alleging that for the past 35 years Schmidt has been a registered representative in the brokerage industry.  The SEC found that from at least 2003 through 2017, Schmidt betrayed his customers’ trust by perpetrating a classic fraudulent scheme, acting without customer authorization, and repeatedly selling securities belonging to some of his brokerage customers and secretly transferring the sale proceeds to cover shortfalls in the accounts of other customers.   The SEC alleged that Schmidt misappropriated over $1.16 million from accounts belonging to seven customers and transferred that cash to at least ten other customers whose accounts were experiencing shortfalls.  In addition, the commission found that rather than tell those customers the truth about their dwindling funds, Schmidt sent them fake account statements and falsely assured the customers that their investment returns could fund their withdrawals without jeopardizing their principal. Most of Schmidt’s customers were elderly retirees with little to no financial expertise and several of Schmidt’s victims were suffering from Alzheimer’s disease or other forms of dementia.  The SEC claimed that at least five of Schmidt’s victims passed away during the course of his fraud. Further, Schmidt’s allegedly profited from the scheme and received over $230,000 in commissions from customers who were either the source of, or recipient of, misappropriated funds.

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