Category Archives: Unauthorized Trading

Wells Fargo Broker Steals from Sick Child: Expelled by FINRA

Ralph Edward Thomas, Jr. of Reistertown, MD, most recently with Wells Fargo Advisors, was sentenced to four years in prison and ordered to pay $838,000 in restitution for stealing money from several customers. One of the customers was a a trust fund set up for a child suffering from cerebral palsy.

FINRA announced the bar from the industry in its March disciplinary actions. The U.S. Attorneys Office for the District of Maryland alleged that Thomas had been stealing from customers for a few years. Over $750,000 was taken from the child’s trust fund, which had been funded with a $3 million medical malpractice settlement. The fraud began as early as 2001. Thomas joined Wells Fargo in 2004 and was discharged in 2010. Prior to that time he worked for Invest Financial Corporation and SunTrust Securities, Inc.

If you have questions about losses in your brokerage account or other matters related to an investment account, do not hesitate to contact us. Nationwide representation. Free consultation. 561 391 19000

Securities & Exchange Commission Warns Investors to be Wary of Unauthorized Trading In Stock Brokerage Accounts

The SEC recently released an alert telling brokers and investment advisers to pay closer attention to unauthorized trading in customer brokerage accounts.

In the risk alert issued by the nation’s top securities watchdog, the SEC says firms should watch for:

  • Changes in trading patterns
  • High volume of trade cancellations or corrections
  • Manual trade changes
  • Unexplained profits for a particular broker
  • Rogue trades
  • Trades that exceed risk tolerance for a particular client

Brokers, traders, assistants, portfolio managers, risk managers and advisers are all potential perpetrators. The alert went on to warn firms to review their supervisory procedures to determine if improvements could be made to address the concerns.

Over the years we have seen a multitude of cases involving retirees whose brokerage accounts were traded without their authority. Unless you have granted discretionary authority, which must be done in writing, to your broker, the broker is required to obtain your authority before buying or selling in your account.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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Rex Securities Law

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Florida-561 391 1900