Vanderbilt Securities last month “discharged” – meaning fired – a veteran financial advisor based in the Philadelphia, Pa., suburb of Malvern who allegedly made hundreds of trades clients failed to approve and generated thousands of dollars in commissions and fees for himself.
The advisor, Gregory W. Ricker, started his career in the securities industry in 1995, according to his BrokerCheck report. He worked for a dozen firms during that time, including GunnAllen Financial Inc. before it went bankrupt in 2010.
According to his BrokerCheck report, Vanderbilt Securities, a mid-sized independent broker-dealer with about 350 advisors based in Long Island, N.Y., discharged Ricker on October 12.
Ricker, who was registered with Vanderbilt Securities for a little more than a year, could not be reached to comment.
The CEO of Vanderbilt Securities, Stephen Distante, said on a phone call Tuesday that the firm was in active litigation with Ricker but declined to comment further.
Ricker was terminated for a variety of claims, according to his BrokerCheck report.
“Multiple customers alleged that Mr. Ricker made approximately 365 unauthorized trades, failed to report customer complaints and falsified business records, resulting in losses and commission refunds exceeding $192,600,” according to the allegations disclosed on the “Employment Separation” section of BrokerCheck.
“Mr. Ricker also breached the Independent Contractor Agreement by failing to fulfill his contractual responsibility for trade corrections, customer complaint settlements and related restitution,” according to BrokerCheck.
Ricker is also at the center of two customer complaints, according to BrokerCheck, both filed in August and waiting resolution.
One customer complaint against Ricker alleges “excessive trading activity conducted without client authorization” and the other “claims unauthorized trading in the account” this June and July, according to BrokerCheck.
Two clients made similar charges against Ricker of excessive trading that were settled, one in 2008 for $4,644 and the other in 2012 for $20,000. Two other claims were denied any customer damages, according to BrokerCheck.
When a broker or advisor is alleged with excessive trading, that means he or she potentially faces repercussions due to standard of care or Regulation Best Interest obligations. More serious are allegations of churning, which implies an intent to defraud.
In June, FINRA said it expelled Reid & Rudiger, a New York broker-dealer with nine brokers, from the securities industry.
The firm and its owners allegedly engaged in churning and excessive trading in customer accounts that led to millions of dollars in extra costs to clients, according to FINRA, violating Regulation Best Interest and industry rules.
FINRA also barred the firm’s two founders, Clifford Reid and Edward Rudiger Jr., from working with any other broker-dealer, according to a statement at the time from FINRA.
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