Larry Charles Wolfe, of Boca Raton, Florida, a stockbroker formerly registered with Herbert J. Sims & Co. 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 he effected trades in customer accounts without authorization. Letter of Acceptance, Waiver and Consent, No. 2016048456401 (June 21, 2017).
According to the AWC, in November of 2015, thirty-nine customer accounts were exposed to transactions effected by Wolfe on a discretionary basis, wherein customers’ securities holdings were sold without their consent. Apparently, Wolfe neither had consent from customers to exercise discretion, and the firm never authorized the customers’ accounts as having been approved by Herbert J. Sims & Co., Inc., to warrant use of discretion in their accounts. FINRA found that Wolfe’s conduct was violative of Municipal Securities Rulemaking Board Rule G-17 and G-8.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Wolfe has been named in twelve customer initiated investment related disputes regarding allegations of his wrongdoing while associated Shearson Lehman Brothers, Inc., Herbert J. Sims & Co., Inc., The GMS Group, L.L.C., and Gruntal & Co.
Specifically, on May 3, 2016, a customer filed an investment related arbitration claim involving Wolfe’s conduct, wherein $1,500,000.00 in damages was requested by customers based upon allegations that Wolfe and the firm made fraudulent omissions and misrepresentations to the customers, breached fiduciary and contractual duties, recommended investments that were not suitable for the customers, and effected unauthorized mutual fund, equity and municipal debt transactions in their accounts. The customers further alleged that Herbert J. Sims & Co., Inc. was liable for failing to supervise Wolfe’s activities involving the customer.
Moreover, on February 24, 2017, a customer filed an investment related arbitration claim regarding Wolfe’s activities where the customer requested $400,000.00 in damages based upon allegations that Wolfe effected unsuitable and unauthorized fixed income transactions in the customer’s account, and induced the customer’s investments by making misrepresentations.
Wolfe was fired by Herbert J. Sims & Co. Inc. on December 7, 2015, based upon allegations that he violated policies of the firm via effecting trades in customers’ accounts without having notified them to procure consent. Wolfe has been associated with Stoever, Glass & Company Inc. since May 2, 2016.
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