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Timothy Ward of Investment Professionals, Inc. Barred by FINRA–Misappropriating Client Funds

Timothy Ward of Investment Professionals, Inc. Barred by FINRA–Misappropriating Client Funds 150 150 Rex Securities Law

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

July 2013

Timothy Ruben Ward (CRD #2600718, Registered Representative, Dexter, Missouri) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Ward consented to the described sanction and to the entry of findings that he solicited customers to buy a mutual fund.

 

The customers gave Ward $10,000 in cash to invest in the mutual fund. Instead of investing the funds, Ward converted the funds for his own personal use and then provided the customers with false quarterly account statements that showed that the money had been invested in the mutual fund. The findings stated that Ward borrowed at least $10,000 in total from firm customers in violation of the firm’s written policy prohibiting lending arrangements with customers. Ward did not give written notice to, nor obtain prior written approval from, the firm for any of the loans he received from the customers.

 

The findings also included that Ward settled a customer complaint without notifying the firm. FINRA found that a firm customer purchased a variable annuity contract in the amount of $52,000. Due to a misunderstanding between the customer and Ward regarding the product, the customer decided to terminate the contract. The customer was beyond the free look period and thus subject to surrender charges in the amount of $4,454.54. Ward settled the complaint by paying the customer the full amount of the surrender charges via cashier’s checks without notifying the firm. (FINRA Case #2013036640801)

According to FINRA records, Ward is not currently registered. He was previously registered with the following firms:

Investment Professionals, Inc.
7/2008-4/2013

U.S. Bancorp Investments, Inc.
12/2001-7/2008

Firstar Investment Services, Inc.

1/2000-12/2001

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

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

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