Broker

North Carolina Advisor Barred After Being Fired by Truist

Published on: March 29, 2024 | by Greco & Greco, P.C.

FINRA, a regulator of the securities industry, recently barred North Carolina broker Christina Peterman after she failed to respond to a FINRA request for information and documents. The Letter of Acceptance, Waiver, and Consent states that the investigation related to a filing by her Broker-Dealer firm, Truist Investment Services, Inc. stating that she had been discharged based on the allegation that she “accessed client information without a business purpose and engaged in unauthorized client transactions.”

Unauthorized trading by investment advisors is generally considered to be a fraudulent activity. Typically, unless discretion to trade without speaking to the customer is granted to the broker in writing, the broker is required to obtain permission for all transactions for the customer after discussing the relevant factors which form the basis for a recommended trade.

Greco & Greco has represented North Carolina investors for decades in FINRA arbitrations based on wrongful conduct by stock brokers and their brokerage firms. If you believe you may have been harmed by a broker’s bad acts, please contact Securities Fraud Lawyer Scott Greco for a free attorney consultation about your case.

Former New Jersey Wells Fargo broker indicted for theft of customer funds

Published on: November 18, 2023 | by Greco & Greco, P.C.

A former stockbroker / investment advisor from Bergen County, New Jersey, has been indicted for allegedly stealing over $3 million from five unsuspecting clients. Kenneth A. Welsh, 42, of River Edge, has been charged with four counts of wire fraud and one count of investment advisor fraud, as announced by U.S. Attorney Philip R. Sellinger on November 16, 2023.

According to the indictment, from July 2017 through March 2021, Welsh, operating as a financial advisor registered with Wells Fargo Clearing Services, purportedly abused his position to misappropriate funds entrusted to him by clients. Instead of responsibly managing their investments, Welsh is accused of diverting substantial sums into accounts under his control, leaving his clients in financial distress. The charges carry severe penalties, with each wire fraud count potentially leading to 20 years in prison and a $250,000 fine, while the investment advisor fraud count could result in five years behind bars and a $10,000 fine, or twice the gross gain or loss from the offense.

The indictment details that Mr. Welsh allegedly used multiple fraudulent means to siphon off customer funds, including having customers sign forms in blank, fraudulently forging signatures, and carrying out unauthorized wires from customer accounts.

U.S. SEC Warns Brokers About Sales Contests That Violate Regulation Best Interest

Published on: August 16, 2022 | by Greco & Greco, P.C.

The United States Securities Exchange Commission (SEC) recently issued a Staff Bulletin which discussed the use of sales contests or other sales incentives by FINRA Broker-Dealer firms in the context of SEC Regulation Best Interest (Reg BI).

Reg BI, 17 CFR 240-15l-1, specifically describes the “best interest” obligation as follows in section (a)(1):

“A broker, dealer, or a natural person who is an associated person of a broker or dealer, when making a recommendation of any securities transaction or investment strategy involving securities (including account recommendations) to a retail customer, shall act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the broker, dealer, or natural person who is an associated person of a broker or dealer making the recommendation ahead of the interest of the retail customer.”