Finra bars former broker for lifting $400,000 from parents' accounts

Finra bars former broker for lifting $400,000 from parents' accounts
Accused of forging parents' names on withdrawal request forms, intercepting checks and then spending money without their permission.
OCT 18, 2016
The Financial Industry Regulatory Authority Inc. on Thursday barred a former Waddell & Reed Inc. broker from the securities industry for making more than $400,000 in unauthorized withdrawals from his parents' accounts. The broker, Gregory Bauer, was registered with Waddell & Reed from 2004 to 2013. According to the Finra settlement, over the course of several years while at the firm, Mr. Bauer was the registered rep serving his parents accounts, identified as WB and CB in the Finra filing. Without notifying them or getting their permission, Mr. Bauer forged their signatures on withdrawal request forms he submitted, according to the settlement. “Several of the forged withdrawal requests caused securities to be sold from his parents' accounts and caused checks to be issued to WB and CB,” according to the settlement. “Bauer, however, intercepted the checks that had been mailed to his parents' home, deposited the checks into his personal bank account, and used the funds for his personal expenses without permission.” After leaving Waddell & Reed, Mr. Bauer joined another securities firm, from which he was fired at the end of September, according to the settlement. By engaging in these actions, he violated various Securities and Exchange Commission and Finra rules, according to the settlement. Mr. Bauer could not be reached for comment. A spokesman for Waddell & Reed, Roger Hoadley, did not immediately return a call Friday. (See: Texas regulatory bans adviser from selling alts, including nontraded REITs )

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.