Did Your Broker Make FINRA's "Bad Guy Report?"

In a recent report from CNBC, they discussed the “bad guy report” from the Financial Industry Regulatory Authority or FINRA. This was taken from the latest monthly disciplinary actions by FINRA, March of 2019, which involves brokers putting clients funds in inappropriate or unregistered investments, defrauding investors, using their client’s money for their own personal use, and defrauding investors who placed their trust in their brokers.
According to the report, FINRA oversees approximately 630,000 brokers. In the March Disciplinary Report, FINRA barred 11 people from working in the securities industry and 16 were suspended.  These brokers can also face additional legal and regulatory problems, depending on how severe their issues.
CNBC sited two brokers in the “bad guy report” as examples. FINRA barred Kristian Gaudet of Larose, Louisiana, for refusing to provide testimony related to findings by his former brokerage, Ameritas Investments. According to the report, Gaudet had allegedly used client funds for his own personal use. Gaudet has been in jail since Jan. 31, charged with two counts of felony theft. Gaudet is accused of stealing approximately $1 million from two clients. Also, Gaudet is accused of using client funds intended for insurance policies to buy real estate for himself.  Kristian Gaudet operated: Kris Gaudet Insurance and Financial Services, and Winston Financial in Louisiana.
According to reports, eight more clients came forward last week with similar stories, so now, the number of charges is 10 counts each of felony theft and money laundering, racketeering and exploitation of the infirm.  Gaudet's bail is set at $680,000.  He must wear an ankle monitor if he posts bail. Gaudet's license was suspended and the Louisiana Department of Insurance issued a cease-and-desist order. The report added that the FBI is also investigating.
Another broker from FINRA’s “bad guy report” involved, Daniel Todd Levine, of Englewood, Colorado. FINRA alleges Levine offered people a chance to invest in discounted bitcoin with the promise of high returns. Allegedly, his brother was supposed to purchase bitcoin from a private seller overseas at a discount of 60 to 90 percent. Levine was supposedly expecting around $2 million in commissions. The investors wired approximately $1.5 million to Levine's brother overseas, and the brother allegedly absconded with the money.
FINRA was investigating allegations that Levine engaged in undisclosed outside business activities, solicited a client to borrow funds for an outside business activity and executed unauthorized trades.  Levin was with Morgan Stanley at the time and resigned in 2018. He was then hired, by First Financial Equity, but was fired for allegedly failing to disclose a past regulatory action against him as is required.
If you were a client of Kristian Gaudet formerly of Ameritas Investments in Louisiana, or Daniel Todd Levine formerly of Morgan Stanley and First Financial Equity of Colorado, or any other broker who may have made FINRA’s “bad guy report,” contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide on a contingency fee basis.