Gregory Russel Bauer, of Saxonburg, Pennsylvania, was barred by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly forging his customers’ signatures, intercepting checks in the mail, and converting more than $400,000 for his personal use.
FINRA’s findings state that while associated with Waddell & Reed, Inc. of Pittsburgh, Pennsylvania, Mr. Bauer, allegedly forged the signatures of his customers, who were Mr. Bauer’s parents, on withdrawal request forms he submitted. These forged documents enabled securities to be sold from his parents’ accounts and for checks to be issued to his parents, which Mr. Bauer allegedly intercepted and deposited into his personal bank account. FINRA found that Mr. Bauer then allegedly used the ill-gotten funds, over $400,000, for his personal expenses. As a result of the aforementioned fraudulent misconduct, Gregory Bauer was barred from association with any FINRA member in any capacity.
Stockbrokers have been known to engage in many types of practices that violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm’s own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages that flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like, Waddell & Reed, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Waddell & Reed investment account due to your stockbroker’s 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 Waddell & Reed stockbrokers for forgery and/or other unauthorized and prohibited fraudulent 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 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, 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.