Former Waddell & Reed broker barred for taking $130,000 from his elderly mother

Former Waddell & Reed broker barred for taking $130,000 from his elderly mother
Robert Lee Basile faces two years of probation after pleading guilty to theft from an elder and embezzlement.
NOV 19, 2018

The Financial Industry Regulatory Authority Inc. has barred a former Wadell & Reed broker for spending $130,000 from his elderly mother's brokerage account on himself without her knowledge. Robert Lee Basile's mother opened a brokerage account with Waddell & Reed in 2014 shortly after her son joined the firm, according to a letter of acceptance, waiver and consent filed with Finra. Mr. Basile served as the broker for the account, but between January 2015 and October 2017, he allegedly withdrew funds to pay for his own living expenses without her consent, it said. (More: New tools to protect elderly from fraud, exploitation) According to a local newspaper, police began an investigation after receiving information about elder abuse from adult protective services in Boise, Idaho, where Mr. Basile's mother lives. Mr. Basile also served as a community services commissioner for the city of Chino, Calif. Chino police arrested the 60-year-old broker on May 22 and charged him with a felony count of theft from an elder and a felony count of embezzlement. Mr. Basile pled guilty and received a two-year suspended sentence with an opportunity to serve probation. If no laws are broken during the two-year period, his sentence could be dismissed, according to the local paper. A representative for Waddell & Reed did not respond to a request for comment. Mr. Basile's BrokerCheck record shows he left Waddell & Reed in January 2018 and worked with Park Avenue Securities from January 2018 through June 25, 2018. (More: Remember Bernie Madoff? Big time financial fraud is back) Mr. Basile could not be reached for comment. Websites and phone numbers listed for him have been disconnected. One of the last posts on his professional Facebook page, dated Dec. 22, 2017, reads: "The holidays are about family — and family conversations. Be sure to speak with your elderly relatives about preventing financial fraud."

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