Finra awards $1.5 million to victims of broker fraud

Barred Michigan rep Christopher Tolmacs 'pocketed' money for funds.
SEP 26, 2017

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.

Latest News

Finra's Reg BI Enforcement: Is it 'ineffective, costly'?
Finra's Reg BI Enforcement: Is it 'ineffective, costly'?

The industry watchdog's own reports reflect failures to deter "willful" and "repeat" violations, raising a crucial question about the future of regulation.

SEC prepares to back away from defending climate rule in court
SEC prepares to back away from defending climate rule in court

Acting Chairman Mark Uyeda directed SEC staff to initiate a pause in court while the commission awaits a quorum. The SEC may decide to withdraw from defending itself in a lawsuit over last year's climate disclosure rule.

wealth.com welcomes Kathy Wunderli in private wealth push
wealth.com welcomes Kathy Wunderli in private wealth push

The top estate planning platform's veteran hire will lead its legal team's efforts to develop estate planning, tax analysis, and wealth transfer solutions for ultra-high-net-worth clients.

Morgan Stanley loses $843,000 investor claim stemming from 'gold bar' scam
Morgan Stanley loses $843,000 investor claim stemming from 'gold bar' scam

“If Morgan Stanley had called my client’s son, this wouldn’t have happened,” the investor's attorney said.

LPL welcomes $630M sibling advisor duo from Corebridge
LPL welcomes $630M sibling advisor duo from Corebridge

Meanwhile, Ameriprise has bolstered its own ranks as an LPL defector joins its branch channel in California.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.