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.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Financial advisers highlight solutions to increase diversity and inclusion

These Excellence in Diversity & Inclusion award winners suggest short-term changes to help foster D&I in the financial advice profession.

Latest news & opinion

Invesco to buy OppenheimerFunds

Deal brings Invesco another $246 billion in assets, as well as high-fee actively managed funds.

Dawn Bennett found guilty of $20 million Ponzi scheme

Jury took less than five hours to convict the former financial adviser and radio host.

10 advisory firm employee benefits you won't believe

Some advisory firms stand out for their creative efforts to keep their troops happy and engaged. Spa retreat, anyone?

401(k) record keepers seek new revenue streams to 'save themselves'

Service providers are getting pinched by fee compression.

Small-cap funds take a beating

For most of the year, the sector had outperformed, but that all changed last week.

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