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FINRA Permanently Bars Rep for Liquidating His Parents’ Investment Accounts

The Financial Industry Regulatory Authority permanently barred former Wadell & Reed advisor Gregory R. Bauer for withdrawing more than $400,000 from his parents’ investment accounts which he was responsible for servicing.

FINRA alleges that from October 2004 to October 2013, while associated with Waddell & Reed, Bauer issued a number of withdrawal request forms without notifying his parents and without permission. He allegedly forged his parents’ signatures on the forms, resulting in $400,000 worth of securities being sold from his parent’s accounts. Several of the forged withdrawal requests caused checks to be mailed to his parent’s home, which FINRA says Bauer intercepted and deposited into his personal bank account.

According to FINRA, Bauer violated Section 10(b) of the Exchange Act, specifically 10(b)-5, which prohibits the use of any device, scheme, or artifice to defraud investors. He also violated FINRA Rule 2020, an antifraud rule similar to 10(b)-5, FINRA Rule 2010, which requires a high standard of commercial honor, and FINRA Rule 2150, which relates to the improper use of customer’s securities or funds.

Bauer, who was registered with H. Beck Inc. until late last month, accepted the settlement without admitting or denying the findings.

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