Blaine R. Stahlman of McDonough, Georgia, the founder and former Chief Executive Officer of of Professional Broker-Dealer Financial Planning, Inc. was sanctioned by Financial Industry Regulatory Authority (FINRA) on October 16, 2024, for supervisory failures related to speculative investments and business-related email communications. Letter of Acceptance, Waiver, and Consent (AWC) No. 2021069380601.
Between March 1, 2019, and February 1, 2021, Stahlman failed to properly supervise a registered representative’s recommendations of GWG Holdings Inc. L Bonds to seven retail customers. These customers had moderate risk tolerance, limited experience with alternative investments, and investment objectives that did not align with speculative securities. Despite these factors, the representative recommended and sold bonds that comprised between 11% and 32% of the customers’ net worth. Concerns about GWG’s business viability were raised, yet Stahlman continued to approve the sales without adequate review. In total, $494,000 of unsuitable speculative bonds were sold.
FINRA also found that Stahlman did not retain or supervise the representative’s business-related email communications. Although the securities broker dealer’s Written Supervisory Procedures explicitly prohibited the use of personal email accounts for customer communications, Stahlman was aware the representative was using personal email for securities-related activities. This included interactions with customers and correspondence with GWG representatives. Stahlman failed to take sufficient action to preserve or review these emails, as required under FINRA rules.
On October 16, 2024, Stahlman resolved the matter by signing a Letter of Acceptance, Waiver, and Consent (AWC) without admitting or denying the findings. As part of the settlement, FINRA imposed a six-month suspension from associating with any FINRA member in all principal capacities, effective November 4, 2024, through May 3, 2025. Stahlman was also fined $15,000.
Stahlman has been registered with American Global Wealth Management Inc. since May 8, 2023. Prior to this, he was associated with Professional Broker-Dealer Financial Planning Inc. from July 6, 1989, to July 8, 2024
