Finra awards $1.5 million to victims of broker fraud

Barred Michigan rep Christopher Tolmacs 'pocketed' money for funds

Sep 26, 2017 @ 1:00 pm

By InvestmentNews

Finra arbitrators have awarded two clients of former broker Christopher Thomas Tolmacs $1.2 million in compensatory damages and $300,000 in punitive damages based on "willful wanton misconduct, conversion of funds and securities fraud."

In its award, the Financial Industry Regulatory Authority said that Mr. Tolmacs, of Portage, Mich., denied the allegations made by former clients Karen and David Gottschall and asserted various defenses.

Mr. Tolmacs was affiliated with Triad Advisors from April 2008 to March 2016 and also operated Harbinger Financial Group and Harbinger Asset Management.

He was barred by Finra in March 2016 after he failed to respond to requests for documents and failed to appear at a hearing looking into whether he entered into prohibited lending arrangements with his clients.

In March 2016, state securities regulators in Michigan revoked his investment adviser and securities registrations and ordered him to pay a $50,000 fine.

According to a report by the Daily Reporter in Coldwater, Mich., one former client of the broker said that Mr. Tolmacs simply "pocketed for his own uses" money entrusted to him for investing.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why broker-dealers are on a roll

Deputy editor Bob Hordt and senior columnist Bruce Kelly discuss last year's bounce-back for IBDs.

Latest news & opinion

Things are looking up: IBDs soared in 2017

With revenue up, interest rates rising and regulation easing, IBDs are soaring.

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

Brokers accept proposed SEC rule on who can call themselves an adviser

Some say the rule will clear up investor confusion, but others say the SEC didn't go far enough.

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

Cadaret Grant acquired by private-equity-backed Atria

75-year-old owner Arthur Grant positions the IBD for the 'next 33 years.'

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print