Patrick Landon Garrett, a former Registered Representative with the Nashville, Tennessee branch of Robert W. Baird & Co. Inc., 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) sanctions and findings that he intentionally and knowingly misrepresented his customer’s account value and attempted to make the customer whole by misusing other customers’ funds.
According to FINRA, Patrick Garrett, of Franklin, Tennessee, misrepresented his customer’s account value by approximately $200,000 in order to conceal the decreased value of her investments. Mr. Garrett allegedly told his customer that her printed and online statements were not accurate due to settlement date issues, which was false. Additionally, FINRA found that Mr. Garrett attempted to make the customer whole by misusing other customers’ funds to buy the initial public offering (IPO) shares in the first customer’s account, resulting in investment losses of over $34,000 to the other customers. Consequently, Patrick Garrett was permanently barred from association with any FINRA member in any capacity.
Registered representatives, stockbrokers, and other financial industry professionals have been known to engage in many types of fraudulent and unlawful behavior which violate industry rules and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement an appropriate supervisory system. The implementation of these rules requires supervisors to monitor employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective supervisory measures, they may be held liable to investment account holders for losses flowing from the misconduct. As a result, investment account holders who have suffered losses stemming from a stockbroker or registered representative’s fraudulent and/or unlawful misconduct can bring forth claims to recover damages against broker-dealers like Robert W. Baird & Co., which have a duty to supervise its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Robert W. Baird & Co. investment account due to your registered representative or stockbroker’s misrepresentations or unsuitable recommendations? 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 unsuitable recommendations, misrepresentations and/or other unauthorized and illegal conduct.
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.