David Braeger of Bayside, Wisconsin was issued a complaint from the Financial Industry Regulatory Authority (FINRA) that outlined several alleged misconducts. While registered with Joseph Stone Capital, FINRA alleged that Braeger converted customer funds that were intended to be invested. The FINRA findings stated that an elderly customer gave a $200,000 check to Braeger to be invested in a private placement, but instead transferred the money to a bank which he later deposited in his account. FINRA further alleged that Braeger used this money to buy a home and continued to lie to his customer about their investment. According to FINRA’s investigation, Braeger provided false or misleading testimony in connection to the case in violation of FINRA Rule 8210. Additionally, the FINRA investigation concluded that Braeger converted customer funds in violation of FINRA Rules 2150 and 2010. Without admitting or denying the FINRA findings, Braeger was barred from association with any FINRA member in any capacity.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their 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 liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from converted funds and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Joseph Stone Capital, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Joseph Stone Capital account due to converted funds by your broker? Was David Braeger your stockbroker? 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 Joseph Stone Capital stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
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 40 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.