The Financial Industry Regulatory Authority “FINRA” accused Joseph Schroeder (CRD# 1293346) of recommending and conducting sales of undisclosed securities to firm customers without proper authorization. Schroeder has agreed to submit a letter of Acceptance, Waiver, and Consent (AWC) without admitting or denying the allegations against him.
Throughout his career, Schroeder has worked for five different brokerage firms. In December of 2005, he began working for Riverstone Wealth Management, which eventually turned into Wunderlich Securities in August 2008. Schroeder was allowed to resign from the firm on August 19, 2013.
From June 2009 to March 2010, Schroeder allegedly sold $300,000 in convertible promissory notes for Titan Energy to customers of Wunderlich Securities without prior authorization from the firm. FINRA alleged that Schroeder wired the funds from customer accounts to Titan Energy and received compensation from Titan Energy for the sales. FINRA also alleged that in one instance, Schroeder borrowed money from a firm customer despite the firm’s policies prohibiting it.
According to FINRA, Schroeder violated the following industry rules:
- NASD Rule 3040 and FINRA Rule 2010, where investors cannot partake in undisclosed private securities exchanges
- FINRA Rule 3240 and 2010, where firm members cannot borrow or lend money without written permission from the firm, prior to the transaction
- NASD Rules 2510 (b), 2110 and FINRA Rule 2010, making discretionary transactions over a client’s account without written authorization
Along with submitting an AWC, Schroeder has also agreed to cease participation with any member firm for 12 months and will pay a $20,000 fine. If you invested with Joseph Schroeder and lost money, call us at Meyer Wilson today. We will provide a free review of your case so you can learn your legal rights and options.