Articles Tagged with robert w baird

Stoltmann Law Offices is investigating cases where brokers have traded excessively and churned their clients’ accounts. FINRA, the U.S. securities industry regulator,  reached a settlement with R.W. Baird for allegedly overcharging commissions on thousands of stock trades in 2019 and 2020. The firm will pay more than $416,000 in fines and restitution.

FINRA alleged “a substantial failure to supervise the commissions the firm was collecting, citing a minimum-commission policy of $100 per trade that resulted in inappropriately large fees for clients who made smaller transactions,” Barron’s reported. FINRA cited one case involving a Baird client who “purchased two shares of Apple stock for $772 and paid the $100 commission, amounting to 13% of the principal transaction.”

FINRA cited three rules that Baird allegedly violated in its trading activity, including FINRA Rule 2121, which sets terms for fair prices and commissions. That rule offers guidance that firms should cap commissions at 5%, but notes that percentage “is a guide, not a rule. FINRA urges brokers to think of the 5% threshold as a ceiling, not a floor, noting that other factors might render a commission at that level too high.”

AdobeStock_82110313-1-300x125According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), former Robert W. Baird broker Patrick Phillips has violated securities laws. Mr. Phillips allegedly accepted two loans from a firm customer totaling $70,000. He also used a personal email account for business purposes in contravention of policies. This prevented CGMI from discovering emails related to the customer loan. For this misconduct, he was fined $10,000 and suspended from the industry for five months.
Patrick Jermaine Phillips, according to online records, is not currently registered as a broker, and has been suspended from the securities industry. He has one customer dispute against him, alleging the taking of a loan from a firm customer, and one regulatory matter against him. He was previously registered with MSI Financial Services in Chicago, Illinois from October 2016 until December 2016, Citigroup Global Markets in Orland Park, Illinois from August 2013 until July 2016, Ameriprise Financial Services in Chicago from August 2010 until August 2013, and Robert W. Baird in Chicago from December 2006 until August 2010. Robert W. Baird may be liable for Phillips losses on a contingency fee basis in the arbitration forum. The firm had a duty to reasonably supervise its brokers.

AdobeStock_17723177-1-300x175The Financial Industry Regulatory Authority (FINRA) ordered Woodbury Financial to pay $1.1 million to a couple whose broker invested their money in an aircraft company, a military building in Indiana, variable annuities, and A-share mutual funds, among other unsuitable investments. A three-person arbitration panel last week found that Woodbury “permitted the execution of unsuitable transactions as a result of its failure to discharge its duty to supervise the former broker,” Robert H. Hoffman. Hoffman was barred from the industry in November 2017 after he refused to cooperate with FINRA. FINRA had been investigating him after claims surfaced that he made unsuitable recommendations and unauthorized transactions, excessively traded accounts and private securities transactions, and other things. Robert Hoffman currently has a $3.2 million complaint against him for suitability, unauthorized trading and churning, also known as excessive trading. These are particularly egregious violations of securities laws and internal firm rules.
A brokerage firm like Woodbury Financial must reasonably oversee its brokers in order to make sure that they do not violate securities laws or internal firm rules. If the brokerage firm does not do so, it may be liable for losses on a contingency fee basis. Woodbury Financial can be sued in the FINRA arbitration forum.
Robert Hayes Hoffman was previously registered with Robert W. Baird in Milwaukee, Wisconsin from October 1999 until January 2002, Northwestern Mutual Investment Services in Indianapolis, Indiana from October 1999 until May 2006, Woodbury Financial Services in Greenwood, Indiana from July 2006 until March 2017, and Thurston, Springer, Miller, Her & Titak in Indianapolis from April 2017 until May 2017. He has three customer disputes against him, two of which are pending, one financial pending matter, two regulatory matters and one judgment/lien, according to his online, FINRA BrokerCheck report. He has been permanently barred from the industry.

AdobeStock_49363801-1-300x200To find out how you can recover your losses on a contingency fee basis. Attorneys are standing by to take your call for a no-cost, no-obligation consultation in order to determine if we can help you bring a claim against Voya Financial if you have losses with Frederick Monroe Jr. 312-332-4200. Monroe pleaded guilty to one count of Grand Larceny on December 21, 2015. On February 16, 2016, Monroe was sentenced to five and a third to 16 years in prison. He also signed confessions of judgment in favor of his victims totaling $3,074,012. Monroe was barred by the Securities and Exchange Commission (SEC) and was barred from participating in any offering of a penny stock, including acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock. These are against securities laws.
According to his online, public report with the Financial Industry Regulatory Authority (FINRA), Monroe was registered with Robert W. Baird in Milwaukee, Wisconsin from July 1994 until January 2002, Northwestern Mutual Investment Services in Latham, New York from July 1994 until February 2006 and Voya Financial Advisors in Albany, New York from February 2006 until June 2015. He has 15 customer disputes against him and one criminal final disposition. He has been permanently barred from the industry.

AdobeStock_9577728-1-300x200Against Milwaukee based Robert W Baird this month in its raiding dispute with Wells Fargo.  The entire article can be found at the link below.

According to a recent InvestmentNews article entitled “Raymond James, Baird to pay $850,000 for SEC wrap-fee violations,” the Securities and Exchange Commission (SEC) fined Raymond James and Robert W. Baird $850,000. The SEC accused both firms of failing to establish procedures needed to determine what their clients were being charged in commissions beyond their wrap-fee programs. The firms were not able to determine the fees charged to their clients when advisers “traded away” with a broker-dealer outside their wrap-fee program, making it impossible to determine a correct number. Raymond James will pay $600,000 and Baird, $250,000. A wrap fee is a comprehensive charge levied by an investment adviser to a client for providing a bundle of services, such as investment advice, research or brokerage services. They allow the advisor to simplify the exchange by charging one fee up front. Andrew Ceresney, director of the SEC’s enforcement division stated: “Baird and Raymond James lacked policies and procedures to consider an entire category of cost information and didn’t fully evaluate whether these wrap fee programs were a good fit.” Please call our Chicago-based law offices at 312-332-4200 for a free consultation with an attorney to discuss your options of suing Raymond James or Robert W. Baird for investment losses. We take cases on a contingency fee basis only.

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