Erez Law is currently investigating former Herbert J. Sims & Co. Inc. financial advisor Larry Wolfe (CRD# 502361) regarding use of discretion in customer accounts. Wolfe has been registered with Stoever, Glass & Company Inc. in Boca Raton, Florida from May 2016 to June 2017. Previously, he was registered with Aegis Capital Corp. in Boca Raton, Florida from February to March 2016 and with Herbert J. Sims & Co. Inc. in Boca Raton, Florida from 2000 to 2016, when he was terminated regarding, “Broker exercised discretion, in a non-discretionary account, in making trades for an account without speaking with client before trades in violation of, among other things, firm policies. In addition, broker failed to appropriately re-title client’s account upon learning that client was deceased, also in violation of firm polices (SP).”
In July 2017, FINRA sanctioned Wolfe to $5,000 in civil and administrative penalties and fines and suspended him for 15 days after he consented to the sanctions and to the entry of findings that he exercised discretion in the accounts of customers, by submitting sell orders to sell one particular security in each customer account, without obtaining prior written authorization from the customers or written approval of the accounts as discretionary from his member firm.
Wolfe has been the subject of 12 customer complaints between 1991 and 2017, one of which was withdrawn and one was closed without action, according to his CRD report:
- February 2017. “unauthorized trading, misrepresentation, unsuitable recommendations, failure to supervise.” The customer is seeking $400,000 in damages and the case is currently pending.
- September 2016. “customer alleges unauthorized trading, unsuitability, misrepresentation.” The case is currently pending.
- September 2016. “customer alleges fraud, negligence, breach of fiduciary duty, breach of contract.” The customer is seeking $100,000 in damages and the case is currently pending.
- May 2016. “The case involves the perpetration of seriously-egregious broker and broker/dealer misconduct upon [customer] and [customer], including, but not limited to, unauthorized trading, unsuitable investment recommendations, fraudulent misrepresentations and omissions of material information, failure to properly Respondent Wolfe and other H.J. Sims employees, violation H.J Sims policies and procedures and securities industry rules and regulations and failures to disclose the unlawful nature of Respondents’ conduct. Respondents H.J. Sims and Wolfe engaged in said misconduct in connection with the handling of Claimants’ H.J. Sims accounts and, as a result, are liable to the [customers] in connection with the following legal claims asserted herein: Fraud, Negligence, Breach of Fiduciary Duty, and Breach of Contract.” The customer is seeking $1,500,000 in damages and the case is currently pending.
- February 2016. “client alleges trading losses.” The customer is seeking $400,000 in damages and the case is currently pending.
- April 2013. “Client claimed 4 trades of the over 35 done in the account from 3/2009 through 4/2013 were unauthorized and unsuitable.” The customer sought $33,141 in damages and the case was settled for $18,330.14.
- April 2010. “Client claims unauthorized trades, breach of fiduciary duty.” The client sought $146,000 in damages and the case was settled for $99,500.
- May 2001. “Customer alleges unauthorized and unsuitable purchases of bonds. The customer also alleges that the account was excessively traded. The transactions at issue occurred between August, 1995 and December, 1999.” The customer sought $178,000 in damages and the case was settled for $20,000.
- May 1991. “Client claimed she was put into lower quality securities and that her account was actively traded.” The customer sought $50,000 in damages and the case was settled for $4,000.
- February 1991. “The above claimant alleged that trading commodities were not suitable even though client amended his trust agreement in order to trade them. NASD panel awarded claimant $71,770.22.”
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Herbert J. Sims & Co. Inc. may be liable for investment or other losses suffered by Wolfe’s customers.
Erez Law represents investors in the United States for claims against former Herbert J. Sims & Co. Inc. financial advisor Larry Wolfe regarding use of discretion in customer accounts. If you were a client of Herbert J. Sims & Co. Inc. or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.