Finra bars former Bancorp rep for taking almost $106,000 from client

John Douglas Wade 'converted' funds from clients' accounts for his own use

Jun 5, 2018 @ 2:50 pm

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has barred former U.S. Bancorp Investments broker John Douglas Wade of Buena Park, Calif., for converting more than $200,000 from the clients' accounts to his own use.

Mr. Wade, who is not now associated with a securities firm, was discharged by his firm in February for "unsatisfactory job performance." The firm filed an amended Form U5 on May 7, 2018, reporting that it was conducting an internal review because Mr. Wade "allegedly misappropriated client funds."

According to Finra, Mr. Wade "converted" more than $105,000 from two elderly USBI customers from February 2013 through July 2017, violating Finra rules. Conversion is defined as an intentional and unauthorized taking of and/or exercise of ownership over property by one who neither owns the property nor is entitled to possess it. The practice is not permitted under Finra rules.

During the same period, Mr. Wade electronically transferred without authorization $47,570.47 from a customer's checking account at a bank affiliated with the firm to Mr. Wade's own mortgage account. The broker similarly used customer funds in amounts totaling $51,141.71 to pay his own mortgage, and wrote a check in the amount of $7,000 from his checking account (at an affiliated bank), ostensibly to invest in real estate investment trusts.


What do you think?

View comments

Recommended for you

Featured video


What's behind the TCA, ETrade deal?

Deputy editor Bob Hordt talks with senior columnist Jeff Benjamin about what each party in the recent acquisition stands to gain by joining forces.

Latest news & opinion

What's in a name? For TCA by ETrade, everything

Trust Company of America is gone, and there's big buzz over the name change. But turning the custodian into an industry powerhouse will take a lot longer — if it happens at all.

When it comes to regulating AI in financial services, murky waters are ahead

Laws are unclear on how the technology fits in with compliance.

As Ameriprise case shows, firms on hook when brokers go bad ​

The SEC will collect $4.5 million from the brokerage firm for failing to supervise brokers who were ripping off clients.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Ameriprise to pay $4.5 million to settle SEC charges that five reps stole more than $1 million from clients

Agency censures firm for not protecting clients from thieving brokers.


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 It'll help us continue to serve you.

Yes, show me how to whitelist

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


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print