Feltl & Co., based in Minneapolis, paid a $1 million fine for alleged supervisory failures, among other things, while overseeing penny stock, and it has now replaced several executives, including it's general counsel, chief compliance officer, head trader, and a branch manager. FINRA reported that Feltl also failed to comply with customer-suitability, disclosure, and record-keeping […]

JOSEPH R. GALLARDO (CRD# 4100045A), 48, formerly from Bartonsville, Pennsylvania, pled guilty in federal court to mail fraud, a charge stemming from an investment fraud which caused his clients a combined loss of $1.8 million. According to court documents, allegedly Gallardo persuaded clients to invest in Blue Meadow Group LLL, which was his own personal […]

Many Soreide Law Group clients, and readers of our blog, often hear us refer to "FINRA." FINRA is the abbreviation of the Financial Industry Regulatory Authority, Inc. In case you are wondering what FINRA is and what they do, we will give you a very brief synopsis. FINRA is responsible for regulating it's member firms […]

BLAKE B. RICHARDS (CRD# 4051402) of Buford, Georgia, was accused May 2013 of misappropriating money from elderly investors and ordered to repay $1.8 million. This was ordered in a judgment by the Securities and Exchange Commission (SEC). An additional $80,000 was added as a civil penalty according to a press release from the SEC. The […]

JOHN M. BABIARZ (CRD# 3047247), a former broker from Peabody, Massachusetts, was sentenced to four years in federal prison and could lose his home, car, his investment account and $645,000 he admitted stealing from his elderly clients. Babiarz, 40, plead guilty in May to wire fraud and aggravated identity theft. Babiarz contacted several of his […]

Joe Mitchell McCartney (CRD #1349989, Redmond, Washington) was suspended by FINRA for three months. McCartney allegedly borrowed $60,000 from a client and did not obtain his firm’s approval for the loans. FINRA's findings stated that the firm’s procedures required prior written approval from the firm's personnel for any lending relationships with clients. McCartney denied the […]

JOHN A. WALDOCK JR. (CRD #2995364, Bloomington, Minnesota) was barred by FINRA for allegedly converting a client’s personal gift cards, worth least $2,200, which were given to his member firm for business purposes. FIRNA's findings stated that the client asked the firm to coordinate a mailing to potential clients with an enclosed gift card provided […]

CLAUS C. FOERSTER (CRD# 1912949) was barred by FINRA for allegedly soliciting his clients to invest in a fictitious entity marketed by Foerster as an income-oriented investment, and converting those investments for his own personal use. Foerster converted approximately $3 million from clients. FINRA's findings stated that Claus Foerster allegedly had clients move funds from […]

Brian Harris Brunhaver (CRD# 2498928 Snomish, WA) has been barred by FINRA for allegedly sending and receiving business-related e-mails on his personal e-mail account, which is against his member firm’s policies. Allegedly these emails sent by Brunhaver to his client contained false statements about a real estate investment trust (REIT). These statements incorrectly assured the […]