Joseph Hersey Pratt (also known as Joseph Hershey Butcher and J.H. Pratt) of Conshohocken Pennsylvania a stockbroker currently registered with Stifel Nicolaus Company is referenced in a Financial Industry Regulatory Authority (FINRA) investigation in which FINRA conveyed that its Department of Enforcement should take disciplinary action against Pratt for allegedly (1) engaging in private securities transactions and (2) lying to his employer about his stock related investment activities. Case No. 20140437503 (Dec. 21, 2018).
According to FINRA Public Disclosure, the determination had been made by FINRA on December 6, 2018 that Pratt may have, inter alia: engaged in private securities transactions; conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 3040. The regulator also stated that Pratt possibly made false or misleading statements to his securities broker dealer employer; conduct violative of FINRA Rule 2010. Further, FINRA suspects Pratt could have participated in outside business activities which had not been made known to the firm by Pratt; conduct violative of FINRA Rules 2010 and 3270 as well as NASD Rule 3030. Pratt may also face disciplinary action for providing investors with misleading documentation or information concerning stock investments; conduct violative of FINRA Rules 2010 and NASD Rule 2210.
FINRA evidently recommended Pratt also be disciplined for seemingly failing to preserve his communications in regard to securities transactions he was involved with; conduct violative of Securities Exchange Act of 1934 Section 17(a) and SEC Rule 17a-3. FINRA indicated that Pratt possibly made misrepresentations concerning his activities when Pratt had been administered a compliance questionnaire through his employing securities broker dealer. Moreover, Pratt supposedly lied to FINRA concerning stock related transactions during the time that he was under a FINRA investigation concerning his activities; conduct violative of FINRA Rules 2010 and 8210. Finally, FINRA believes Pratt may have engaged in insider trading; conduct violative of Securities Exchange Act of 1934 Section 10(b), Rule 10b-5, and FINRA Rules 2010 and 2010. FINRA Public Disclosure does not reveal which of Pratt’s employers he was associated with during the incidents referenced in FINRA’s investigation into Pratt.
FINRA Public Disclosure reveals that Pratt has been identified in two additional customer initiated investment related disputes containing accusations of his misconduct while employed with Wells Fargo Advisors LLC. In particular, on November 19, 2009, a customer initiated investment related complaint regarding Pratt’s activities was settled for $48,547.75 in damages supported by allegations that omissions had been made to the customer by Pratt in reference to the contingent deferred sales charges on mutual funds held in the customer’s investment portfolio.
Thereafter, on March 27, 2018, a customer initiated investment related complaint involving Pratt’s conduct was resolved for $20,000.00 in damages founded on accusations that while Pratt was associated with Wells Fargo Advisors, Pratt put the customer’s assets in speculative foreign equity products that were not suitable given the customer’s instructions of avoiding investments carrying risk of loss.
Pratt’s registration with Wells Fargo was terminated on December 8, 2014 following an internal investigation by the firm into Pratt’s involvement with customers investing in private placement securities outside the firm’s auspices; and Pratt’s involvement in outside companies that were not made known by Pratt to the company. Pratt has been employed by Stifel Nicolaus Company Inc. since November 11, 2014.
