Robert James Wodicker of Arnold Missouri a stockbroker formerly registered with LPL Financial LLC has been fined $80,000.00 and barred from registering as an investment adviser representative or broker-dealer agent in Missouri according to a Final Order to Cease and Desist and Order Awarding Civil Penalties Cost and Other Administrative Relief based on findings that Wodicker engaged in fraudulent activities in the offer and sale of securities. In the Matter of Robert J. Wodicker Case No. AP-17-14 (Aug. 14, 2017).
According to the Order, between April of 2015 and July of 2016, while Wodicker was associated with LPL Financial as both a stockbroker and investment adviser representative, he placed $100,000.00 belonging to seventy-five year old customer, MR1, into Wodicker’s own bank account in connection with a real estate investment that LPL Financial LLC never authorized.
Apparently, MR1 and her daughter were Wodicker’s customers since 2013, during which time Wodicker was associated with Wells Fargo. Allegedly, after the customers transitioned their accounts to LPL Financial, Wodicker steered the customer towards effecting a $300,00.00 real estate investment. Apparently, the customer provided Wodicker $100,000.00 without having received any documentation information about the transaction. Wodicker seemingly failed to inform MR1 that the investment transaction would be effected outside LPL Financial’s auspices, and did not inform the customer about the terms and conditions of the investment such as the rate of return or the timeframe for the customer’ funds to be repaid.
Evidently, LPL Financial LLC caught wind of the transaction and discharged Wodicker on January 22, 2016 founded on accusations that Wodicker took possession of customer funds for Wodicker’s own account in regard to a possible real estate investment. The Order stated that the firm informed the Enforcement Section of the Missouri Securities Division of the Office of Secretary of State that the customer’s daughter complained about Wodicker’s withdrawal of funds from the customer’s account. Apparently, Wodicker admitted to having taken the customer’s funds and placing it in his account so that a real estate transaction could be consummated.
The Order stated that Wodicker also made recommendations for the elderly customer to sell an annuity issued by Pacific Life despite the customer not having been informed about a surrender charge of $42,398.84 being assessed to liquidate the annuity. Apparently, Wodicker falsely stated to MR1 that the recommendation was based on LPL’s inability to service the annuity. LPL Financial reportedly informed the Enforcement Section of Missouri Securities Division on March 3, 2017 that it was not necessary for the customer to have terminated the annuity, as Wodicker could have serviced the customer’s existing annuity.
Moreover, Wodicker reportedly procured two loans totaling $20,000.00 from another customer of LPL. Thereafter, Wodicker proceeded to repay one of the customer’s principal and interest totaling $12,000.00 using funds that Wodicker procured from MR1. Wodicker seemingly failed to repay the customer all the money that was lent to him.
Furthermore, the Order stated that Missouri’s Enforcement division investigated Wodicker’s activities; however, Wodicker failed to cooperate in the investigation. Missouri Securities Commissioner found that Wodicker offered or sold securities that were neither registered nor exempt from registration; conduct violative of Section 409.3-301. In addition, the Commissioner concluded that Wodicker engaged in unethical and dishonest practices; conduct violative of Section 409.4-412(d)(13). Further, the Commissioner found that Wodicker’s fraudulent activities and statements in regard to the customers’ investment transactions was violative of Section 409.5-501.
FINRA Public Disclosure confirms that Wodicker has also been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that he failed to comply with FINRA’s inquiry into his activities. Case No. 2015047039301 (Jan. 24, 2017).
