Waddell & Reed - Law Offices of Robert Wayne Pearce

Dec 16, 2016

Waddell & Reed Broker Barred For Forgery and Conversion

Gregory Russel Bauer, of Saxonburg, Pennsylvania, was barred by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly forging his customers’ signatures, intercepting checks in the mail, and converting more than $400,000 for his personal use. FINRA’s findings state that while associated with Waddell & Reed, Inc. of Pittsburgh, Pennsylvania, Mr. Bauer, allegedly forged the signatures of his customers, who were Mr. Bauer’s parents, on withdrawal request forms he submitted. These forged documents enabled securities to be sold from his parents’ accounts and for checks to be issued to his parents, which Mr. Bauer allegedly intercepted and deposited into his personal bank account. FINRA found that Mr. Bauer then allegedly used the ill-gotten funds, over $400,000, for his personal expenses. As a result of the aforementioned fraudulent misconduct, Gregory Bauer was barred from association with any FINRA member in any capacity.

Apr 18, 2016

Waddell & Reed Broker Suspended by FINRA for Exercising Discretion without Authorization

Carlos Benavidez Jr., a former registered representative with the Louisville, Kentucky branch of Waddell & Reed, consented to, but did not admit to or deny, the sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he exercised discretion in 80 customer accounts without the necessary prior written authorization from the customers or his member firm. According to FINRA, Carlos Benavidez Jr., of Louisville, Kentucky, exercised discretion in effecting hundreds of securities transactions in approximately 80 customer accounts. Further, FINRA found that Mr. Benavidez participated in the backdating of 26 customer notes in order to falsely reflect the date of the conversations with the customers. Mr. Benavidez did not have the written authorization from his customers to exercise discretion, nor had he received written approval from Waddell & Reed for discretionary trading in these accounts.