FINRA’s Department of Enforcement investigated Bauer and alleged he forged client signatures, made unauthorized liquidations of securities and withdrawals from his parents’ accounts at Waddell & Reed. According to FINRA, Bauer forged his parents’ signatures on withdrawal request forms. In some instances, Bauer caused checks to be issued to his parents that he then intercepted and deposited into his own bank account.
Based upon the foregoing misconduct, FINRA alleged Bauer violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and FINRA Rules 2020 and 2010. For example, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.’” Here, Bauer’s fraudulent act of stealing customers’ funds was not just and equitable.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Bauer while employed by Waddell & Reed, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.