Kevin Donald Wanner of Bismarck North Dakota a stockbroker formerly employed by Questar Capital Corporation has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment advisor representative or otherwise associating with a securities broker dealer or investment advisor representative according to an Order pertaining to findings of Wanner defrauding investors. In the Matter of Kevin D. Wanner, Administrative Proceeding File No. 3-19116 (Mar. 25, 2019).
According to the Order, Wanner was barred primarily because of pleading guilty to mail fraud which was violative of 18 U.S.C. § 1341. United States v. Kevin D. Wanner Criminal Action No. 1:17-cr-170 (D.N.D. Dec. 5, 2017). Wanner was ordered to turn over $3,099,424.60 and serve 11.25 years in prison for what was alleged to be a scheme that Wanner operated between 2000 and 2016.
Wanner’s customers had been defrauded of at least $3,000,000.00 as those customers received counterfeit documents and false information from Wanner. Wanner took steps to conceal the fraud by providing customers with bogus accounts summaries, tax documents and account statements so that he could make it seem as though the investments were legitimate.
This is not the first time that Wanner has been accused of wrongdoing by a securities regulator. On January 11, 2016, Wanner was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on consenting to findings that he obstructed the regulator’s investigation into allegations of his misappropriation. Letter of Acceptance Waiver and Consent No. 2015048162701. According to the AWC, Wanner became the subject of an investigation following Questar Capital Corporation’s termination of Wanner and North Dakota Securities Department’s Order revoking his stockbroker registration.
Wanner was issued an Order by the North Dakota Securities Commissioner that contained findings of Wanner engaging in unethical, dishonest or fraudulent actions which had been violative of North Dakota Securities Act. The Commissioner found that he misrepresented to investors that their funds would be placed in financial institutions that were FDIC insured. Wanner instead placed investor funds in his own account for his own personal use.
FINRA sought to obtain information and documents as well as Wanner’s recorded testimony all in reference to accusations of his misuse of customer funds. Wanner declined to cooperate by the deadlines that FINRA imposed. FINRA found that Wanner’s refusal to cooperate in the investigation constituted the violation of FINRA Rules 8210 and 2010.
Wanner has been identified in a customer initiated investment related arbitration claim which was settled for $182,828.00 in damages supported by accusations of fraudulent actions by Wanner which caused the Questar Capital Corporation to incur unwarranted losses.