According to reports, a former Raymond James broker has been barred from the industry after Finra alleged he had been running a Ponzi scheme.
The reports indicate that FINRA accused Claus Foerster of stealing nearly $3 million from 13 clients since 2000.
FINRA apparently alleged that Foerster solicited investments for a purported investment fund known as S.G. Investments, which turned out not to be an investment fund, but rather a bank account Foerster controlled. He reportedly instructed 13 customers to move funds from their brokerage accounts to their personal bank accounts and then write checks payable to S.G. Investments.
The reports also indicate that Foerster signed a letter accepting Finra's punishment without admitting or denying Finra's allegations.
According to Foerster's FINRA Broker Report, he was employed by Morgan Keegan & Co. Inc. beginning in 2008 and came to Raymond James last February by way the firm's acquisition of Morgan Keegan.
Foerster also appears to have been terminated by Raymond James on on June 4.
The report also indicates that Raymond James is in the process of attempting to make restitution to the clients involved. Given the seriousness of these allegations, it is recommended that victims of Foerster's scheme seek legal counsel to ensure that their legal rights are protected.
The foregoing information is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For a free consultation with a securities attorney, please call the firm at 312/238/9650. For more information on The White Law Group, visit www.whitesecuritieslaw.com.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.