FINRA Bars Former USBI Broker for Allegedly Stealing REIT Investment Funds to Pay Mortgage
The Financial Industry Regulatory Authority has barred a former U.S. Bancorp Investments Inc. broker for allegedly stealing more than $105,000 from two elderly customers to pay his mortgage.
The Financial Industry Regulatory Authority has barred a former U.S. Bancorp Investments Inc. broker for allegedly stealing more than $105,000 from two elderly customers to pay his mortgage.
FINRA claims that from February 2013 through July 2017, Orange County, California-based John Douglas Wade conducted a series of unauthorized electronic transfers totaling nearly $47,600 from a client’s checking account to his own mortgage account.
In another instance, Wade allegedly instructed his client to write a number of checks totaling more than $58,000 to invest in real estate investment trusts. FINRA claims that none of the money was used for its intended purpose, and Wade instead used the funds to pay his mortgage. In total, Wade allegedly stole $105,712 from the two elderly customers.
In February 2018, USBI reported that Wade was discharged for “unsatisfactory job performance.” However, after an internal investigation, the firm disclosed last month that he had “allegedly misappropriated client funds.”
Wade entered the securities industry in 2002 and held FINRA Series 7 and 66 licenses. Prior to joining USBI in 2011, he served as a broker with Wells Fargo Advisors, Wells Fargo Investments, Citicorp Investment Services, Edward Jones, and Merrill Lynch.
Wade had no prior disciplinary history and agreed to the sanctions without admitting or denying the charges.
