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

Micro 401(k) boom places advisors at the center of retirement plan growth
Micro 401(k) boom places advisors at the center of retirement plan growth

As SECURE 2.0 and state mandates drive micro 401(k) plan adoption, advisors are set to play a bigger role in helping small businesses navigate retirement solutions.

Advisors prize AI's potential for productivity gains, improved advice
Advisors prize AI's potential for productivity gains, improved advice

More than three-fifths of surveyed advisors see generative AI as an efficiency booster, though many are still concerned about data privacy and lack of tech integration.

Edward Jones, Franklin Templeton beef up SMA menus amid industry growth
Edward Jones, Franklin Templeton beef up SMA menus amid industry growth

The new offerings, including managed options on Franklin's canvas platform, come as managed account assets surge in the US to hit $13.7 trillion.

Advisor moves: RBC, Steward Partners add elite advisors from Goldman, Truist
Advisor moves: RBC, Steward Partners add elite advisors from Goldman, Truist

Meanwhile, Raymond James bolstered its employee advisor arm with an industry veteran who previously oversaw $750 million at Stifel.

DOGE cuts risk bogging down push to implement Trump’s tax breaks
DOGE cuts risk bogging down push to implement Trump’s tax breaks

Staffing shortfalls, new policies, and increased demand for clarity create potential speed bumps for tax planning and compliance.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.