Richard Alan Shotz of Daytona Beach Florida a stockbroker formerly registered with Wells Fargo Clearing Services LLC has been suspended by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity based upon accusations that the stockbroker either failed to comply with a customer initiated investment related arbitration award or settlement agreement or that he failed to report his compliance with FINRA. Case No. 19-00109 (Aug. 15, 2019).
In January 2018, Shotz was the subject of a regulatory action and was fined $7,500.00 and suspended for four months by FINRA based upon allegations that the stockbroker effected short-term unit investment trust trades that failed to be suitable for Morgan Stanley customers and that caused them to pay unnecessary sales charges. Letter of Acceptance Waiver and Consent No. 2015048039501 (Jan. 16, 2018).
According to the AWC, short term unit investment trust trades were recommended for 486 accounts by Shotz. Customers were told by the stockbroker to purchase unit investment trusts and then sell them before their maturities. FINRA indicated that Shotz recommended on 1,200 occasions for customers to buy more unit investment trusts with funds that the customers obtained from their premature unit investment trust sales. Shotz violated FINRA Rules 2010 and 2111 as well as National Association of Securities Dealers (NASD) Rule 2310 in this regard.
Immediately thereafter, Wells Fargo terminated Shotz and demanded the repayment of a $378,897.70 forgivable loan. He did not pay, Wells Fargo filed the FINRA Arbitration claim. Shotz did not appear, and based upon his failure to pay the Award, Shotz is now barred. Broker-dealer debt collection against their prior employees now includes the added ad terrorum tool that if you do not pay, we can take securities registration or licenses.
Shotz has been identified in six customer initiated investment related disputes concerning accusations of his misconduct while employed by securities broker dealers including Citigroup Global Markets Inc. and Morgan Stanley. FINRA Public Disclosure confirms that a customer initiated investment related complaint concerning Shotz’s activities was resolved for $15,254.64 in damages founded on accusations of misrepresentations being made about the death benefit of a variable annuity sold to the customer when Shotz was employed by Citigroup Global Markets.
Another customer initiated investment related complaint pertaining to Shotz’s conduct was settled for $8,812.25 in damages supported by allegations that transactions that were facilitated in the customer’s account by Shotz failed to be suitable for the Morgan Stanley Smith Barney customer. On January 22, 2018, a customer filed an investment related complaint in reference to Shotz’s conduct where the customer sought unspecified damages based upon accusations that the customer received poor investment advice about exchanged traded funds and equities by Shotz when he was associated with Morgan Stanley Smith Barney.
Shotz was discharged by Wells Fargo Clearing Services on February 26, 2018 based upon allegations of his bad unit investment trust transactions as referenced by FINRA.
