According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel also will pay $59,360.43 in restitution.
The article states that the FINRA’s settlement with the St. Louis-based financial services firm details the misconduct of an unnamed representative. According to FINRA, the broker allegedly received power of attorney for an unnamed senior client in 2011 and was allowed to write checks on behalf of the client.
The article from Wealth Management goes on to say that Stifel typically did not allow its representatives to serve as power of attorney for non-family members. However, Stifel occasionally made exceptions, including for the unnamed broker and their senior client. Stifel has ended its policy on exceptions for non-family power of attorney agreements.
Stifel coded the client’s account as an "employee-related account" because of the broker’s power of attorney, and the firm reviewed it monthly, according to the article. But, this review didn’t include the payee for checks from the client’s account signed by the broker, which means the firm allegedly missed six checks made payable to the broker or bank accounts he controlled, totaling approximately $105,000. According to FINRA, Stifel later reimbursed the senior client’s estate. According to the Wealth Management article, in December of 2019, the broker tried to transfer the remaining balance in the client’s account to himself. Stifel rejected the transaction, found the representative’s misconduct, and fired him.
If you or an elderly loved one have experienced financial losses due to the actions or recommendations of Stifel or any other broker/dealer, 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 through FINRA on a contingency fee basis, no fee to you if no recovery.
Soreide Law Group is investigating potential investor claims involving World Investments LLC after FINRA sanctioned the firm for supervisory failures involving deferred variable annuity exchanges and registered index-linked annuities (RILAs). Investors who suffered losses in variable annuities, RILAs, or other investments recommended through World Investments may have legal options and should learn more about FINRA's […]
Investors potentially experienced sales practice violations by securities broker Gary Bryan Frisch [CRD: 5037164, Surprise, Arizona], according to public information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Frisch worked for Avantax Investment Services Inc. and Avantax Advisory Services from October 25, 2019, through September 5, 2025, and has been registered with Cetera Wealth Services […]
Investors potentially incurred losses because of securities broker Christopher Frederick Chlupp [CRD: 2950578, Wisconsin Dells, Wisconsin], given the disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Chlupp has worked for Robert W. Baird Co. Incorporated as a securities broker since June 25, 1998, and as a financial advisor since September 24, 1998. Keep reading to […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com