UPDATED June 2015
Richard Martin Ohlhaber (CRD #2154794, Registered Principal, Keller, Texas) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Ohlhaber consented to the described sanction and to the entry of findings that he participated in the sale of life settlement contracts offered by a company to at least 18 customers without providing written notice of his involvement in the sales of the life settlement contracts to either of his FINRA member firms, and never obtained either firm’s permission to engage in such outside business activity. The findings stated that Ohlhaber received commission checks from the company totaling over $300,000. These checks were addressed to an entity whose sole members were Ohlhaber and his wife. Ohlhaber endorsed these checks and deposited them in the entity’s bank account. Ohlhaber had access to this bank account and withdrew or otherwise used the money contained in this bank account. The company was not an approved product at either of Ohlhaber’s firms. Ohlhaber completed questionnaires at both firms in which he represented that he was not engaged in any outside business activity, and he misrepresented to one of the firms that the entity was a “shell” that was not engaged in any business.
The findings also stated Ohlhaber provided false sworn testimony which was material to FINRA’s investigation and as a result, impeded the investigation. The findings also included that Ohlhaber loaned money to customers who were not Ohlhaber’s family members. Ohlhaber never informed his firm about these loans and the firm never pre-approved the loans in writing. The firm’s WSPs only permitted loans between registered representatives and customers who are the registered representative’s immediate family members. ( FINRA Case #2012032077901)
FINRA records indicate that Ohlhaber’s recent registration history is:
FSC Securities – Grapevine, TX 8/2010-11/2012
Southwest Securities, Inc. , SouthLake, TX 5/2008-4/2012
As of June 2015, there are two pending customer disputes reported on Ohlhaber’s FINRA records:
- A $60,000 claim alleging violations of Texas Securities Act, Texas Deceptive Trade Practices-Consumer Protection Act, fraud and misrepresentation related to a life settlement contract
- A $450,000 claim alleging misrepresentation with respect to the tax consequences of the surrender of a variable annuity.
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.
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