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

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 )