Broker Barred and Fined $170K by FINRA for Allegedly Taking Advantage of Elderly Client

Soreide Law Group obtained the following information from FINRA’s website under, “Disciplinary and Other FINRA Actions December 2015.”
JOSEPH R. BUTLER (CRD# 2447535 Brandywine, Maryland)
was barred by FINRA and ordered to pay $170,408.18, plus interest, in restitution to his former client. The NAC affirmed the hearing panel’s findings that Butler allegedly converted an elderly client’s funds and named himself the beneficiary of her annuity by submitting a falsified beneficiary change request form falsely representing that he was her son.
The NAC found that Joseph R. Butler allegedly took advantage of his elderly client, who was suffering from declining mental health and relied on him to help manage her finances. Butler, aware of her diminished capacity, withdrew funds from the client’s bank account by writing and cashing checks payable to himself and to “cash,” made wire transfers from the client’s account to his own, and used her accounts to pay his personal tax liabilities. Butler also took the client to his attorney where she executed papers naming Butler her personal representative and the primary beneficiary under her will, and giving him power of attorney.
The NAC found that Butler’s misconduct violated the high standards of commercial honor and just and equitable principles of trade required of all persons registered with FINRA.
This matter has been appealed to the SEC and the bar remains in effect pending review.
(FINRA Case #2012032950101)
FINRA has permanently barred Joseph R. Butler from acting as a broker or otherwise associating with firms that sell securities to the public. Butler had worked in the securities industry for 18 years.
Butler was previously registered with the following firms:
10/2012 - 10/2015 INNOVATION PARTNERS LLC - CHARLOTTE, NC
06/1997 - 08/2012 WOODBURY FINANCIAL SERVICES, INC. - CLINTON, MD
If you feel your broker or financial advisor has taken advantage of you or an elderly family member, call Soreide Law Group for a no-cost consultation with a lawyer regarding the possibility of recovery of your financial losses at: 888-760-6552.