Charles Louis Laubach (also known as Chuck Laubach) of Baltimore Maryland a stockbroker formerly registered with Capital Portfolio Management Inc. has been fined 5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Laubach executed transactions in the accounts of Capital Portfolio Management customers without their permission. Letter of Acceptance Waiver and Consent No. 2018057298401 (June 20, 2019).
According to the AWC, Laubach was required under Capital Portfolio Management Inc. procedures to produce written authorization from customers for any discretionary trading to be effected in the customer’s account. In addition, no discretionary trading was permitted unless and until Capital Portfolio Management provided their own approval of the customer’s discretionary account.
Evidently, between July of 2016 and March of 2018, a total of sixty trades had been placed by Laubach in nine Capital Portfolio Management customers’ accounts on a discretionary basis where the customers never provided any authorization to warrant Laubach’s activities. The accounts were also not accepted by Capital Portfolio Management for purposes of Laubach’s exercise of discretion. FINRA found Laubach’s unauthorized transactions in this regard to be violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Evidently, Laubach has been subject of two disciplinary actions by the State of Colorado Division of Securities in regard to his misconduct in the securities industry. In particular, Laubach was sanctioned by Colorado Division of Securities for failing to comply with Chapin Davis’ compliance requirements and for mismarking customer order tickets. Case NO. 2017-CDS-002 (Oct. 21, 2016). Laubach’s licensure in Colorado was then revoked by the Division of Securities supported by accusations of Laubach’s failure to comply with its licensing requirements. Case No. 2018-CDS-045 (July 23, 2018).
FINRA Public Disclosure confirms that Laubach is referenced in five customer initiated investment related disputes that concern allegations of his unacceptable conduct when he was associated with Morgan Stanley Smith Barney and Wells Fargo. For example, Laubach is referenced in a customer initiated investment related civil action brought in the Circuit Court of Baltimore, Maryland in which customers requested unspecified compensatory damages founded on accusations of the failure to pay customers’ dividends on their GSV Capital Corp. equity holdings. Civil Action No. 24-c-16-006897 (Mar. 7, 2017).
Moreover, Laubach has twice been terminated from a securities broker dealer employer for violative conduct. In particular, Laubach was employed with Ameriprise Financial Services Inc. from September 19, 2012 to February 23, 2015, at which point he was discharged based upon allegations of his unauthorized solicitation of equities and mismarking equity trades placed in customer accounts. Laubach was then discharged by Chapin Davis supported by accusations of Laubach’s mismarking of trades in customer accounts and his failure to conform to the firm’s policies and procedures.
