WARNING: Investigation Into Ameritas’ Kristian Gaudet’s Possible Conversion Of Customer Funds

WARNING: Investigation Into Ameritas’ Kristian M. Gaudet’s Possible Conversion Of Customer Funds

Kristian M. Gaudet (CRD#: 4190811, Cut Off, Louisiana) is a prior Ameritas Investment Corp. registered representative who Financial Industry Regulatory Authority (“FINRA”) just barred from having any association with a FINRA member. Specifically, Kristian Gaudet submitted a Letter of Acceptance, Waiver and Consent #2018060600901 on January 24, 2019, in which he accepted and consented to FINRA’s findings that he refused to testify in a FINRA investigation focused on his alleged misappropriation of Ameritas’ investors’ funds. FINRA barred Kristian Gaudet for violating FINRA Rules 8210 and 2010.

Ameritas Terminates Kristian Gaudet For Misusing Customer Funds

Apparently, Ameritas Investment Corp. notified FINRA via a December 10, 2018 Form U5 submission that it terminated Kristian Gaudet for misconduct. Specifically, the firm claimed that Kristian Gaudet took a customer’s funds for his own use. This seems to indicate that he misappropriated or converted a customer’s funds. Typically, when FINRA finds that a broker misappropriated or converted a customer’s funds, the regulator imposes the most severe sanctions. This includes a bar from the securities industry.

Apparently, FINRA’s investigation into Kristian Gaudet preceded Ameritas’ termination of his securities registration. Namely, he disclosed on his FINRA BrokerCheck report that FINRA was investigating a filing made under Rule 4530 concerning suspicions of Kristian Gaudet’s fraudulent activities as alleged within legal actions.

Kristian Gaudet Refuses To Testify For FINRA Staff About His Possible Conversion Of Customer Funds

On January 10, 2019, according to the AWC, FINRA requested that Kristian Gaudet testify about the allegations of his utilization of client funds for personal use. Subsequently, Kristian Gaudet’s legal counsel e-mailed FINRA to seemingly relay that Kristian Gaudet knew about FINRA’s request for his testimony. However, Kristian Gaudet declined to testify for FINRA staff or otherwise participate in the investigation. Because of this, FINRA was unable to make a determination about whether Kristian Gaudet converted or misappropriated the customer’s funds. By refusing to testify, FINRA found Kristian Gaudet violated FINRA Rules 8210 and 2010.

FINRA Investigations Of Brokers

FINRA’s goals is to promote investor confidence and protect investors. FINRA Rule 8210 grants FINRA the ability to review a brokerage firm’s and a stockbroker’s books, accounts and records during complaints, examinations and investigations. Principally, FINRA uses Rule 8210 to justify investigating claims of brokers’ violations of securities laws and industry rules. Because of this, the brokers FINRA investigates have to make a tough decision. They could either hand over information which could lead FINRA to find that they violated laws or rules, which can cause FINRA to impose severe sanctions and spawn private legal actions. Alternatively, the broker could refuse to cooperate with FINRA, in which case FINRA bars them for impeding an investigation. Evidently, Kristian Gaudet opted for the latter.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

If you experienced losses by investing with Ameritas Investment Corp. registered representative Kristian Gaudet, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Our firm has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.

 

2019-02-01T18:36:02+00:00February 1st, 2019|

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