Joseph Charles Schroeder, a former broker with the Plano, Texas branch of Wunderlich Securities, Inc. (Wunderlich Securities), submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he participated in private securities transactions without the necessary written approval from the FINRA member firm.
FINRA found that Mr. Schroeder recommended and sold $300,000 of convertible promissory notes in Titan Energy to several investors, 12 of whom were firm customers. Mr. Schroeder recommended these notes to investors and wired the funds from their Wunderlich Securities accounts to Titan Energy. He then allegedly received compensation from Titan Energy for the sales. Mr. Schroeder neglected to give prior written notice or to obtain prior written approval from Wunderlich Securities to engage in these private securities transactions
According to FINRA, Mr. Schroeder also failed to receive his firm’s approval for the solicitation and borrowing of funds from a firm customer and he exercised discretion to purchase securities in the same customer’s account, without the customer’s prior written discretionary authority.
Consequently, Joseph Schroeder, of Dallas, Texas, was assessed a deferred fine of $20,000 and suspended from association with any FINRA member in any capacity for 12 months. The suspension is in effect from July 20, 2015 through July 19, 2016.
Stockbrokers, financial advisors, and other financial industry professionals have been known to engage in many types of misconduct which violate industry rules and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker dealers and/or their supervisors fail to establish and implement these protective measures, they may be held liable to investment account holders for losses flowing from the employees’ misconduct. As a result, investors who have suffered losses stemming from unauthorized securities transactions or other misconduct by their broker or registered representative can bring forth claims to recover damages against broker dealers like Wunderlich Securities, which have a duty to supervise its employees in order to prevent broker misconduct.
Have you suffered losses in your Wunderlich Securities investment account due to Joseph Schroeder’s or another registered representative or stockbroker’s unauthorized securities transactions or other misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against financial professionals for unauthorized and/or fraudulent misconduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.