The Securities and Exchange Commission yesterday charged Patrick Thayer of Cincinnati, Ohio, previously a dually-registered representative and investment advisory representative, with misappropriating more than $1.3 million from an advisory client.
The SEC’s complaint alleges that in November 2013, Thayer surreptitiously established an account, acting individually and through Broadway Financial Solutions, in a client’s name over which he maintained control and, without the client’s permission, regularly transferred client assets to the account, which he then used to pay personal expenses, including his mortgage. The complaint alleges that Thayer engaged in this conduct for nearly a decade, in total misappropriating over $1.3 million by periodically selling the client’s securities to fund transfers to the clandestine account. Supposedly, Thayer perpetrated the fraud by establishing a bank account under the client’s name in November 2013 without their knowledge or permission. In setting up the bank account, Thayer forged the client’s signature on the account opening documents and used his Broadway Financial office address instead of the client’s home address. He also set up the account so that he could access and transfer funds from it.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Ohio, Western Division, charges Thayer with violating the antifraud provisions the SEC. Thayer, without admitting or denying the allegations, consented to a partial settlement, agreeing to be permanently enjoined from future violations of the charged provisions and to pay monetary relief in an amount to be determined by the court at a later date upon motion of the SEC. The settlement is subject to court approval.
According to BrokerCheck, Thayer was an advisor with LPL Financial for two years prior to being barred by the Financial Industry Regulatory Authority for failing to request termination of his suspension within three months of the date of the Notice of Suspension. Thayer also previously served as an advisor at Parkland Securities LLC, Sagepoint Financial Inc. and H.D. Vest Investment Services.