Ex-Schwab broker barred for alleged theft of $1 million in office supplies

Former rep purchased office equipment through the firm's order system without authorization, then sold them to individuals, Finra alleged.
NOV 03, 2014
The Financial Industry Regulatory Authority Inc. has permanently barred a former Charles Schwab & Co. Inc. broker after he allegedly stole around $1 million in office equipment from his former firm. Between February and August of this year, Jeffrey Brian Grove, who was a financial consultant in the firm's Melbourne, Fla., branch, used the firm's order system to purchase supplies and equipment, and then sold the items to “different individuals,” according to a letter of acceptance posted to Finra's disciplinary database. The letter did not specify what equipment was allegedly stolen. Mr. Grove signed the letter agreeing to Finra's sanctions without admitting or denying the findings. Mr. Grove, who had spent his 17-year career in financial services with Schwab, serviced approximately 250 accounts, Finra said. Schwab terminated his employment on Aug. 29, according to the letter. He was discharged for “allegations regarding Mr. Grove's purchases of unauthorized office equipment through the firm's office supply channels,” according to his record on Finra's BrokerCheck database. A Schwab spokeswoman, Sarah Bulgatz, said in an e-mailed statement that the firm had cooperated with law enforcement in the investigation and that there is “no evidence of any client impact as a result of Mr. Grove's illegal activities.” She deferred additional questions to law enforcement. In August, Mr. Grove was charged with two felony counts, according to a report from Schwab on Mr. Grove's public BrokerCheck record. He was charged in the Circuit Court of the Ninth Judicial Circuit in and for Orange County, Fla., with conspiracy to traffic in oxycodone, a prescription painkiller, and “unlawful use of a two-way communication device to commit a crime,” according to the BrokerCheck report. He pleaded not guilty, according to court documents. His attorney, Heather Clyde Harris, could not immediately be reached for comment. Mr. Grove had one other disclosure event on his record for possession of more than 20 grams of cannabis in 1997. Mr. Grove was unable to be reached for comment.

Latest News

Advisor moves: FiNet practice Merrit Point tucks in $1B Truist team in Florida debut
Advisor moves: FiNet practice Merrit Point tucks in $1B Truist team in Florida debut

Elsewhere, a Commonwealth team in Massachusetts converts to Cetera, while Janney draws four former Wells Fargo advisors to its Radnor, Pennsylvania office.

Trader used firm ties to freeze $3.6 million, investors allege
Trader used firm ties to freeze $3.6 million, investors allege

Clients say he copied the boss on his emails - and now they can't touch their cash.

CFTC alleges North Carolina fund manager faked profits, lost $8.6 million
CFTC alleges North Carolina fund manager faked profits, lost $8.6 million

He wired millions to his own accounts and told investors the fund was winning.

OnePoint BFG taps RISR as advisors chase business-owner clients
OnePoint BFG taps RISR as advisors chase business-owner clients

The partnership arrives as most small business owners near retirement age still don't have a formal succession plan in place.

Trust & Will cuts staff amid restructuring, AI disruption
Trust & Will cuts staff amid restructuring, AI disruption

A spokesperson for the estate planning fintech cited AI's reshaping of the industry as Trust & Will restructures its business.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.