Ronald Wayne Nichter, a former broker at Boston, Massachusetts based Cantella & Co., Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the described sanction and to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he misappropriated approximately $140,000 from customers. FINRA stated that in order to carry out the misappropriations, Mr. Nichter forged the clients' signatures on Letters of Authorization that instructed his member firm's clearing firm to issue checks made payable to the customers. Mr. Nichter then intercepted the checks, endorsed them, deposited them into his personal account, and utilized the funds for his personal use without the customers' knowledge and consent. Mr. Nichter, of Greenfield, Indiana, was barred from association with any FINRA member in any capacity.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and enforce a reasonable supervisory system, they may be liable to investors for damages flowing from any misconduct. Therefore, investors who have suffered damages due to broker misappropriations such as those by Mr. Nichter can bring forth claims to recover losses against broker-dealers like Cantella & Co., which should oversee its brokers and prevent misappropriation and other misconduct.
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. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.