Claus Christoph Foerster of Greenville South Carolina a stockbroker formerly registered with Raymond James Associates Inc. is referenced in a customer initiated investment related written complaint which was settled for $27,500.00 on May 18, 2017 supported by accusations that (1) the customer’s signature had been forged on documentation to effect investment transactions and (2) the customer’s funds had been misappropriated.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Foerster has been identified in five additional customer initiated investment related disputes containing allegations of his misconduct while employed with securities broker dealers including Citigroup Global Markets Inc., Morgan Keegan Company and Raymond James. In particular, a customer initiated investment related arbitration claim concerning Foerster’s activities was resolved for $250,000.00 in damages founded on accusations of Foerster having embezzled the customer’s funds when he was employed by Smith Barney.
Subsequently, a customer initiated investment related arbitration claim regarding Foerster’s conduct was settled for $250,000.00 in damages based upon allegations that while Foerster was associated with Citigroup Global Markets Inc., he utilized the customer’s funds for his own use rather than investing the funds for the benefit of the customer; and Foerster defrauded the customer and converted the customer’s funds. FINRA Arbitration No. 15-03210 (June 16, 2016).
Then, a customer initiated investment related civil action filed in the Court of Common Pleas of Spartanburg, South Carolina which involved Foerster’s activities had been resolved for $115,000.00 in damages supported by accusations of the customer’s funds being misappropriated by Foerster in reference to the customer’s cash management accounts. Civil Action No. 2017-CP-42-01103 (July 24, 2018).
Foerster has been barred from associating with any FINRA member in any capacity founded on findings that Foerster solicited customers’ funds for a fraudulent investment wherein Foerster converted the customers’ funds. Letter of Acceptance Waiver and Consent No. 2014041483401 (June 18, 2014). According to the AWC, customers were steered by Foerster towards writing him checks payable to S.G. Investments. Yet, the checks were reportedly deposited into a bank controlled by Foerster rather than placed in investment funds. Evidently, customers had been provided phony account statements as part of Foerster’s scheme. An estimated $3,000,000.00 in funds were converted by Foerster from thirteen customers. FINRA found Foerster’s conduct violative of FINRA Rules 2010 and 2150(a).
Foerster was convicted on five counts of fraud and sentenced to three years behind bars. Criminal Docket No. 16-CR00182 (D.S.C. Jan. 12, 2017).
