Claus C. Foerster, of Greenville, South Carolina, a stockbroker formerly registered with Raymond James & Associates, Inc., has been subject to a customer initiated investment related arbitration claim on March 26, 2015, in which the customer requested $509,100.00 in damages based upon allegations that Foerster committed forgery and misappropriated the customer’s monies.
FINRA Public Disclosure reveals that Foerster has been subject to seven other events regarding his misconduct. Particularly, on March 6, 2014, a customer initiated investment related arbitration claim involving Foerster’s conduct was settled for $165,000.00 in damages based upon allegations that Foerster made misrepresentations to the customer concerning investments, breached his fiduciary duty, effected unauthorized and excessive trades in the customer’s account, and committed fraud.
On July 22, 2014, another customer initiated investment related arbitration claim involving Foerster’s actions was resolved for $250,000.00 in damages based upon allegations that Foerster embezzled funds from the customer. Additionally, on November 14, 2014, a customer initiated investment related arbitration claim involving Foerster’s conduct was settled for $75,000.00 in damages based upon allegations that Foerster committed forgery and misappropriated monies from the customer.
On June 4, 2014, Raymond James & Associates, Inc. terminated Foerster based upon allegations that he admitted to stealing customers’ funds. Subsequently, Foerster was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2014041483401 (June 18, 2014).
According to the AWC, between 2000 and 2008, customers were solicited by Foerster to make an investment in S.G. based upon Foerster’s misrepresentations that such investment happened to be an income-producing investment fund. Customers were reportedly instructed to take the funds from their personal banking accounts and brokerage accounts to provide funding for the investment, and their checks were made out to S.G. Investments accordingly.
Unbeknownst to customers, their checks were being deposited into the personal bank account of Foerster, rather than an investment fund. The AWC revealed that several customers were provided with fictitious statements reflecting account balances. Apparently, $3,000,000.00 in monies belonging to thirteen customers had been converted by Foerster. As such, FINRA found that Foerster’s actions were violative of FINRA Rule 2010.
Guiliano Law Group
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