Charles William Wodrich (also known as Chip Wodrich), of Goodyear, Arizona, a stockbroker registered with Hornor Townsend Kent LLC, is the subject of an enforcement action initiated by Financial Industry Regulatory Authority (FINRA) in which the regulator is seeking sanctions against Wodrich based upon allegations that Wodrich failed to provide documents and information and failed to appear for testimony, as requested by FINRA during its investigation into the suitability of Wodrich’s investment recommendations. Department of Enforcement v. Charles Wodrich, No. 2022075322601 (May 30, 2024).
The regulator conducted an investigation into Wodrich’s conduct while he was registered with Hornor Townsend Kent from December 2013 to August 2022. According to the Complaint, Wodrich failed to cooperate with FINRA’s requests for testimony and information, which the regulator needed to determine whether he made investment recommendations that were against his customer’s best interests. FINRA also sought information that would help confirm whether he provided misleading information to that customer, engaged in unauthorized trading, and used a personal email account not approved by the securities broker dealer to conduct a securities business.
On July 26, 2023, FINRA sent Wodrich a request for information and documents, which was followed by an extension granted at Wodrich’s request, setting a new deadline of August 23, 2023. However, Wodrich did not meet this deadline, nor did he provide the requested information. Subsequent requests sent in August and October of 2023 were ignored, with Wodrich ultimately stating on October 30, 2023, that he did not consent to FINRA’s requests. In addition to failing to provide the requested information, Wodrich also refused to appear for testimony scheduled for November 2023 despite receiving the requests and acknowledging them.
According to the Complaint, Wodrich’s failure to comply with FINRA’s requests has hindered the investigation into whether Wodrich engaged in conduct that violated FINRA’s rules. Therefore, FINRA is seeking sanctions against Wodrich, which may include disciplinary measures such as a bar from the securities industry, for the alleged violation of FINRA Rules 2010 and 8210. The case remains pending as of the filing date of the Complaint.
FINRA Public Disclosure shows that Wodrich is referenced in three customer initiated investment related dispute concerning Wodrich’s conduct while associated with securities broker dealers. On May 23, 2003, a customer initiated investment related complaint involving Wodrich’s conduct was settled for $14,419.45 in damages based upon alleged omissions regarding market volatility of a SPIVA and the fact that annual payments could decrease on annuities purchased by the customer when Wodrich was associated with Thrivent Investment Management Inc.
On June 3, 2003, a customer initiated investment related complaint involving Wodrich’s conduct was settled for $12,793.00 in damages based upon allegations that Wodrich did not disclose that a single premium immediate variable annuity was associated with the stock market, stated that the customer would always have the amount invested, and stated that the payout would cover the horizon premium.
Wodrich is also referenced in a complaint that was settled on August 8, 2022, for $17,000.00 in damages based upon allegations that Wodrich made unsuitable recommendations in ETFs when Wodrich was associated with Hornor Townsend Kent LLC.
Wodrich was associated with Hornor Townsend Kent LLC in Goodyear, Arizona from December 5, 2013, to August 11, 2022.
