Robert Lee Basile of Corona California, a stockbroker formerly employed by Waddell Reed Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he stole the funds belonging to a Waddell Reed customer, whom just happened to be his own elderly mother, and without her knowledge or consent, used these funds for his own personal benefit. Letter of Acceptance Waiver and Consent No. 2018058953201 (Nov. 16, 2018).

According to the AWC, on June 22, 2018, the firm notified FINRA via Form U5 that it conducted a review into Basile’s activities once it had been apprised of Basile being arrested for having stolen property from someone who he was a caretaker for. The arrest reportedly came after Basile had been investigated for elder abuse.

However according to the Chino Hills Champion Newspaper:

San Bernardino County prosecutors declined to file criminal charges against a Chino community services commissioner after his arrest last week on suspicion of embezzling from a family trust fund.

“The case was turned down due to a lack of sufficient evidence with a request for further investigation from the law enforcement agency,” said Christopher Lee, spokesman for the district attorney in an email Thursday.

Lack of evidence would include the lack of testimony from his mother that the funds were taken without her knowledge or consent.  However, the lack of testimony from Basile’s mother is no impediment for FINRA barring Basile for the diversion or conversion of customer funds from firm accounts.

The AWC stated that in September of 2014, a brokerage account had been established by the customer at Waddell Reed. Basile was apparently responsible for servicing the customer’s account. Evidently, from January of 2015 to October of 2017, a total of $130,000.00 had been withdrawn by Basile from the customer’s account without the customer having provided permission. The AWC stated that Basile then proceeded to use the customer’s funds for his own personal benefit. FINRA found Basile’s conduct violative of FINRA Rules 2010 and 2150(a).

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