Blaine Stahlman Fined By FINRA

FINRA sanctioned securities broker Blaine Robert Stahlman [CRD: 1189213, Castle Rock, Colorado], according to disclosures on FINRA BrokerCheck. Apparently, Blaine Stahlman worked for Professional Broker-Dealer Financial Planning Inc. from July 6, 1989, to July 8, 2024, and for American Global Wealth Management Inc. beginning May 8, 2023. He is currently registered with First Asset Financial Inc. as of January 2, 2025. Keep reading to learn more about the disclosures against Stahlman.

FINRA Sanctioned Stahlman For Supervisory And Recordkeeping Failures

From March 2019 to February 2021, Blaine R. Stahlman was responsible for supervising a financial representative at his firm, Professional Broker-Dealer Financial Planning, Inc. (PBD). During that time, the representative supposedly sold $494,000 worth of a type of investment called L Bonds to seven retail clients. These L Bonds, issued by a company named GWG Holdings, were considered high-risk and speculative, and they were not rated by any credit agency. While some investors might find these products appropriate, FINRA found that the clients involved in these transactions generally had moderate risk tolerance, limited experience with alternative investments, and relatively modest net worth. In some cases, the clients were seniors. Despite reviewing the investment applications, Stahlman approved the sales. One of the representatives had even raised concerns with him about GWG’s financial health, but the sales continued without extra oversight.

GWG Holdings Recommended By Broker Under Blaine Stahlman’s Supervision

GWG Holdings had changed its business model in recent years and had a history of financial losses. To raise money, it sold these L Bonds through a network of brokers like PBD. By early 2022, after PBD’s clients had already invested, GWG defaulted on its obligations and later filed for bankruptcy. These events further underscored the risky nature of the investment.

In addition to the concerns about investment suitability, FINRA also found that Stahlman did not properly oversee how his representatives communicated with clients. PBD did not provide company email accounts or use a system to retain emails for review. Stahlman knew that at least one representative was using a personal email account to communicate with clients and other parties about securities business. Even with that knowledge, Stahlman allegedly didn’t take reasonable steps to preserve those messages or ensure supervision, as required by FINRA and SEC rules.

FINRA Finds Stahlman Failed To Supervise

FINRA concluded that these issues showed a failure to maintain a proper supervisory system and to keep necessary records, which are key responsibilities for someone in Stahlman’s position. As a result, Stahlman violated Rules 3110, 4511, and 2010. He agreed to a settlement with FINRA that included a six-month suspension from working in any supervisory roles at a brokerage firm, and a $15,000 fine.

Impacted By Securities Broker Blaine Stahlman?

Are you looking for more information about Blaine Stahlman? If so, reach out to Soreide Law Group online or at (888) 760-6552 and consult with a securities attorney. Soreide Law Group has recovered losses for investors throughout the country, works on a contingency fee basis, and advances all costs. Stahlman and brokerage firms Stahlman worked for deny accusations of sales practice violations.