Former Broker Refuses to Comply with FINRA Requests, Barred for Alleged Misconduct
By Staff
Charles William Wodrich, a former registered representative, has been barred from associating with any Financial Industry Regulatory Authority member firm in any capacity. The decision comes after Wodrich failed to provide information and documents and failed to appear for on-the-record testimony as requested by FINRA in connection with an investigation into his conduct.
According to FINRA, Wodrich, who first entered the securities industry in 1996, was, from December 2013 through August 2022, registered with FINRA through his association with Hornor, Townsend & Kent, or HTK.
In approximately June 2022, FINRA stated that it received a complaint to its Securities Helpline for Seniors regarding Wodrich. FINRA opened an investigation into whether Wodrich provided misleading information to and recommended securities transactions that were not in the best interest of a senior customer and also into whether he used a personal email account to conduct securities-related business.
On Aug. 11, 2022, HTK filed a Uniform Termination Notice for Securities Industry Registration, also known as Form U5, disclosing it had discharged Wodrich for various firm-related violations, including using an unapproved email address to communicate with clients; use of discretion in client accounts; and failure to forward a client complaint in a timely manner. After HTK filed the Form U5, FINRA expanded its investigation to include whether Wodrich exercised discretion without written authorization in customer accounts.
In connection with FINRA’s investigation, FINRA sent a complaint and first and second notices of complaint to Wodrich in the summer of 2024. Wodrich eventually responded via email with more than 100 pages of documents which he described as including “all affirmative defense information.” His response, however, did not comply with FINRA Rule 9215(b) in that he did not specifically admit or deny each allegation.
As a result, multiple initial pre-hearing conferences were scheduled, none of which Wodrich attended. Furthermore, FINRA requested that Wodrich produce certain information and documents in connection with its investigation, and, according to FINRA, Wodrich did not provide a complete response to these requests.
Finally, FINRA requested that Wodrich provide on-the-record testimony. Wodrich repeatedly replied that he did “not consent” to the request for his testimony. He additionally stated, “This is my testimony: I am guilty of bending over backwards, continuously going the extra mile, and always doing what is in the best interests of the client.”
As a result of his actions, FINRA stated that Wodrich violated Rule 8210 which, among other things, requires that persons subject to FINRA’s jurisdiction “provide information orally, in writing, or electronically . . . and to testify . . . with respect to any matter involved in [an] investigation, complaint, examination, or proceeding.”
For this violation, Wodrich has been barred from associating with any FINRA member firm in any capacity. FINRA did state that the decision may be appealed to the National Adjudicatory Council.
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