The Financial Industry Regulatory Authority (FINRA) barred broker Thomas P. Casper, formerly of Stifel, Nicolaus & Company, Inc. for borrowing money from customers and several relatives without prior approvial of his firm, Stifel Nicolaus, Inc.
In its Disciplinary Proceeding, FINRA alleged that between 2008 and 2010, Casper approached multiple investors, including three elderly, widowed customers not related to him, and borrowed between $2,000 and $10,000 from each client. FINRA found that while Casper had repaid the three elderly, non-family customers, at the time of the proceeding, Casper still had outstanding loans with his mother-in-law and brother.
Furthermore, FINRA discovered that Casper had provided false information on several audit questionnaires and documents both to Stifel and to FINRA in relation to these loans, answering "No" to the question, "Do you have personal loans with clients, family members or other Stifel employees?" and incorrectly citing home improvement projects and repairs as the reason Casper was soliciting such a loan. FINRA alleged that the real reason Casper engaged in the activity was not to complete a project, but because he had fallen behind on his mortgage.
Out of concern for the public interest, FINRA considered sanctions that would prove "sufficiently remedial to deter [Casper] from any future misconduct." Accordingly, FINRA determined this appropriate punishment to be industry banishment.
If you invested with Thomas P. Casper or loaned funds to your stockbroker, and such activity has proven harmful to you, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.
Credit to www.brokeandbroker.com for jumping on this story first.