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."

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

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.