Articles Tagged with Joseph Butler

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Joseph R. Butler, a former Registered Representative with Woodbury Financial Services, Inc. (Woodbury Financial) was permanently barred by the Financial Industry Regulatory Authority (FINRA) for taking advantage of an elderly, dementia suffering customer’s bank accounts, converting her money for his own use, and naming himself as her annuity’s beneficiary, falsely representing that he was her son.

In its investigation, FINRA states that Mr. Butler admitted that his 75 year old, widowed customer who suffered from dementia was dependent on him and trusted him to take care of her.  Mr. Butler was added to the elderly customer’s accounts after observing that her mental faculties were declining.  It was then that Mr. Butler began withdrawing money from her accounts.  According to FINRA’s findings, between September 2009 and December 2010, Mr. Butler wrote nine checks from his customer’s accounts totaling $105,646.158.  Eight of the nine checks were made payable to himself or cash, and the ninth check he used to pay his Federal income taxes.  FINRA goes on to state that Mr. Butler arranged to have the customer’s account statements delivered to his home address rather than hers and, in the same month, wired $5,000 from her accounts to his own, claiming that it was a “test,” according to FINRA.  Further, Mr. Butler sent a change request form for his customer’s $453,000 annuity in which he removed the granddaughters as beneficiaries and named himself, falsely representing on the form that his relationship to the customer was “son.” Continue reading →

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Joseph Butler of Brandywine, Maryland was barred by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly converting a customer’s funds for his own personal use. Mr. Butler entered the insurance industry in 1967 and in 1994 became registered with Woodbury Financial Services, Inc. (Woodbury) as an investment company and variable contracts products limited representative. In 2012, Mr. Butler was terminated after he failed to disclose he was listed as a beneficiary for multiple client banking accounts.

In August 2013 FINRA filed a complaint against Mr. Butler alleging that he converted a client’s funds for his own personal use. FINRA alleged that Mr. Butler violated Woodbury policies and took advantage of an elderly client using their funds to pay his taxes. This client was an elderly widow with diminishing mental health. Mr. Butler frequently visited this client and noticed her mental and physical health was declining and that she was not paying her bills. In 2009 Mr. Butler was added as a joint account holder to her bank accounts. On that same day, FINRA found that Mr. Butler transferred $25,000 from his clients account to his own personal account. In 2009 alone, Mr. Butler wrote a cashed three checks from his clients account.

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