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Maddox Hargett & Caruso, P.C. regularly reviews the Broker Check Web site of the Financial Industry Regulatory Authority (FINRA) for reports on disciplinary actions and issues pertaining to brokers and investment firms. Recently, the following notice, dated April 4, 2013, concerning a broker named Ronald Wayne Nichter caught our attention.
Specifically, Nichter was employed as a broker with Cantella & Co., Inc. from 2006 to 2013. According to Broker Check, Nichter allegedly forged letters of authorization by signing customers’ names without their knowledge or consent and/or affixing signatures to letters of authorization without the knowledge or consent of clients. By allegedly doing these actions, Nichter caused Cantella’s clearing firm to issue checks made payable to customers. Nichter admitted to fraudulently endorsing the checks and then depositing them into his own account, thereby converting funds for his own use and benefit.
In total, FINRA says Nichter misappropriated approximately $140,000 from 10 customers.
Cantella subsequently terminated Nichter’s employment with the firm. Moreover, Nichter has been barred from associating with any FINRA firm in any capacity.
This isn’t Nichter’s first time to face regulatory troubles. In 2004, Nichter was employed with Edward Jones. According to Broker Check, Nichter was charged with violating the firm’s “stop and hold” policy and failing to educate clients in the use of stop and limit orders.