Chicago-based Stoltmann Law Offices is representing investors who’ve suffered losses from dealing with broker-advisors who’ve robbed their accounts. There’s no shortage of incidents where brokers have taken advantage of older Americans to “churn” or over-trade their accounts to generate commissions. In many cases, their clients may be unaware of the abuses or unknowingly granted power of attorney to facilitate broker theft of customer funds. Other times, brokers go rogue and flat out steal from their clients. That is the unfortunate reality for Totowa, New Jersey-based PFS Investments financial advisor Jeffrey Dampf.
FINRA, the federal securities regulator, has barred ex-Primerica/PFS broker Jeffrey Dampf, who had joined the firm in 2009, according to Thinkadvisor.com. “On Oct. 30, 2020, Ocean County Prosecutor Bradley D. Billhimer announced that Dampf, then 69, of Brick Township, New Jersey, was charged with attempted theft and conspiracy to commit theft. Meanwhile, Robert Tindall, then 46, and Leanna Guido, then 47, both of Toms River, New Jersey, were charged with theft for their roles in the same scheme.” An investigation by the Ocean County Prosecutor’s Office “revealed that Dampf, in his capacity as the power of attorney and accountant for two senior siblings, was misappropriating funds entrusted to him while caring for the two older clients,” according to Billhimer.
Dampf “allegedly attempted to electronically transfer $500,000 to an investment account from the victims’ bank account for his own benefit. The transfer was ‘flagged,’ however, and the money was not transferred from the victims’ account,” according to Billhimer. “Tindall and Guido received funds they were not entitled to in an amount exceeding $1.5 million” from the victims, Billhimer said. “The funds were allegedly misappropriated through check or electronic transfer executed by Dampf and drafted to appear as though they were legitimate reimbursements for money spent on the care and for the benefit of the clients.”
Without admitting or denying FINRA’s findings, Dampf signed a FINRA letter of acceptance, waiver and consent on Sept. 29 in which he consented to FINRA’s barring him from associating with any FINRA member companies in any capacity.
Note: Brokers are not allowed to transfer money or trade without your explicit written permission unless you give them “discretionary” authority over your account, which often opens the door to overtrading and other abuses.
Have you invested with brokers and have lost money as a result? FINRA and the SEC have strict rules on disclosing risk profiles on all investments sold by brokers and investment advisers. If they fail to fully inform you of downside risk or vet shady companies offering investments, you may have a case in arbitration. Furthermore, financial advisors are prohibited from engaging in excessive trading, churning, or any other trading schemes that result in investors paying high commissions and fees.
Firms are also legally required by FINRA to monitor and supervise what their brokers are selling – their investments must be vetted and authorized by the firms – and have an obligation to investors to fully reveal true risk and return information about the investments sold or the trading strategies used. Broker-dealers and advisors are also required to fully review all of the investments they are selling to determine if they are suitable for your age and risk tolerance. Investors can file FINRA arbitration complaints if these rules are broken. You can often avoid rogue broker-advisors by checking their backgrounds through BrokerCheck,
If you invested with a broker-advisor and lost money as a result, you may have a claim to pursue through FINRA Arbitration. Please contact Stoltmann Law Offices, P.C. at 312-332-4200 for a free, no obligation consultation with a securities attorney. Stoltmann Law Offices is a contingency fee law firm which means we do not get paid until you do!