Barred Broker Joseph Pratt Allegedly Breaches Fiduciary Duty While At Stifel Nicolaus
The Financial Industry Regulatory Authority (“FINRA”) reports troubling information in regard to securities broker Joseph Hersey Pratt (CRD#: 719416, Conshohocken, PA). Notably, the securities broker, who last worked for securities firm Stifel Nicolaus (2014 to 2019), is barred by FINRA which means that he cannot be a securities broker for a FINRA member firm (most major securities firms). Pratt also reports three investor disputes involving allegations against him. Not only that, but the broker indicates that two securities firms have disaffiliated with him on bad terms. Here’s what we know.
Client Indicates That Joseph Pratt Breached Fiduciary Duty
Evidently, a client of Stifel Nicolaus brought a dispute about Joseph Pratt in June 2020. First of all, the client alleged violations of Florida Securities and Investor Protection Act. Secondly, the client indicated that Pratt breached his fiduciary responsibility to the client. It seems that the broker may have failed to act in the client’s best interest and negligently recommended or traded stocks and mutual funds. Furthermore, the client suggested that Stifel Nicolaus or Pratt violated FINRA rules on suitability. For this reason, the client demanded $232,000. This matter is awaiting a resolution.
FINRA Sanctions Pratt Over Private Securities Transactions
In September 2019, FINRA issued severe sanctions against Joseph Pratt – namely a bar from being associated with FINRA firms as a securities broker or in other capacities. FINRA indicated that Pratt misused confidential information regarding a bio-pharmaceutical company.
Not only that, but Joseph Pratt allegedly solicited six investors (five Wells Fargo clients) for private securities transactions involving a different company which had failed. FINRA particularly took issue with Pratt supposedly arranging these transactions without going through his employer and getting permission. Apparently, Pratt privately set up meetings for investors and he provided presentations to them. Clients of Pratt reportedly invested about $436,000.00 in the company. Evidently, Stifel Nicolaus disaffiliated with Pratt for this incident.
Wells Fargo Client Indicates That Joseph Pratt Placed Accounts In Aggressive Stocks Against Client’s Instructions
Also, BrokerCheck shows that a client of Wells Fargo took issue with Joseph Pratt’s sales practices. In a March 2018 complaint, the client alleged that Pratt sold or recommended risky stocks when the client did not want to be at risk of losing money. It appears that Wells Fargo paid this client $20,000 to settle the matter.
Losses From Investing Through Stifel Nicolaus Broker Joseph Pratt?
Apparently, Joseph Pratt denies allegations of his sales practice violations. Have you experienced losses by investing through him? If you have, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced investment loss recovery attorneys to see if there is anything that you can do about it. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who lost money because of their advisors or brokers.
