Carl Busch, a Registered Principal with the Dallas, Texas based WFG Investments, Inc. (WFG) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for failing to adequately supervise the unsuitable IRA recommendations and transactions of a registered representative under his supervision.
According to FINRA, Carl Wayne Busch, of Oklahoma City, Oklahoma, failed to adequately supervise or properly investigate numerous red flags in connection with a registered representative of his member firm who recommended and engaged in unsuitable trades in the Individual Retirement Account (IRA) of a retiree with known health problems, limited income, and a “moderate” risk tolerance.
FINRA found that the employee under Mr. Busch’s supervision had recommended and purchased three unsuitable securities for a retiree with a degenerative eye disease and limited income. The unsuitable recommendations included an investment of $100,831 in a speculative Oklahoma based oil and gas company which resulted in an almost complete loss when that company declared bankruptcy.
Mr. Busch allegedly failed to properly investigate numerous red flags that the employee was engaging in practices that were to the detriment of his customers. Consequently, Carl Busch was fined $5,000 and suspended from association with any FINRA member in any principal capacity for 45 days. The suspension was in effect from January 19, 2016 through March 3, 2016.
FINRA rules require brokerage firms to establish and implement a reasonable supervisory system to protect customers from the risks associated with investing. The implementation of the rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to account holders for investment losses which stem from their employees’ misconduct. Therefore, investors who have suffered losses due to a brokerage firm’s failure to supervise the unsuitable recommendations of its representatives can bring forth claims to recover damages against firms, like WFG Investments, which have a duty to supervise employees in order to protect their customers’ interests.
Have you suffered losses in your WFG Investments account due unsuitable recommendations or trades in your IRA? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against WFG Investments stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
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