In September, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that registered representative Joe Schroeder of Dallas, Texas and formerly associated with Wunderlich Securities out of Plano submitted a letter of Acceptance, Waiver and Consent in which he was assessed a deferred fine of $20,000 and suspended from association with any FINRA member in any capacity for 12 months.
Without admitting or denying the findings, Joe Schroeder consented to the sanctions and to the entry of findings that he participated in undisclosed private securities transactions without giving prior written notice to, or obtaining prior written approval from his member firm. The findings stated that Schroeder recommended and sold $300,000 worth of convertible promissory notes in Titan Energy to several investors, including 12 firm customers. Schroeder recommended these sales to the investors, wired the funds from their accounts at his firm to the entity, and received compensation from the entity for these sales.
The findings also stated that Joe Schroeder borrowed money from his firm’s customer in contravention of his firm’s policies and without prior written notice and the firm’s approval. The findings also included that Schroeder exercised discretion to purchase securities in the same customer’s account but did not receive the customer’s prior written discretionary authority to manage her account in this manner.
The suspension is in effect from July 20, 2015, through July 19, 2016.
Joe Schroeder’s registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration.
Joe Schroeder was registered with:
According to FINRA’s CRD disclosure report, Joe Schroeder has been the subject of two customer complaints and one regulatory investigation.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues. Typical claims that we are asked to review involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.
Since a Supreme Court ruling in the 1980s, most investment related disputes between brokerage firms and their customers have been filed in an arbitration forum hosted by FINRA Dispute Resolution. FINRA, along with the SEC, serves as a securities industry “watchdog” and regulator. Most brokerage firms require their clients to sign binding arbitration agreements, mandating that any disputes between them be arbitrated at FINRA.
Investors pursuing claims at FINRA typically advance claims related to suitability. FINRA rules require that all registered representatives make suitable investment recommendations to their clients. Other claims are based on negligence or breach of fiduciary duty, while another category includes claims based on misrepresentations and fraud. Most claims filed with FINRA are resolved within 15 months, and oftentimes, the cases are resolved via settlement or mediation in under a year.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.