Things are headed south for Southlake, Texas, Southwest Securities stockbroker Richard M. Ohlhaber, after he and his firm have been named in another customer dispute, this one seeking 300,000.00 in damages in for securities fraud.
This is not the first time things have gone south for Ohlhaber. FINRA’s BrokerCheck reveals that Ohlhaber is also subject to thirteen other disclosure incidents. Particularly, on June 2, 2016, Ohlhaber became subject to a customer dispute in which he was alleged to have made unsuitable investment recommendations in Life Partners, Inc. Another customer lodged a dispute against Ohlhaber on October 15, 2015, in which the customer requested $230,800.00 in damages after alleging that Ohlhaber made unsuitable investment recommendations and misrepresentations concerning Life Partners, Inc.
Ohlhaber is subject to a pending customer dispute from January 13, 2014, in which a customer requested $450,000.00 in damages in connection with allegations against Ohlhaber of making misrepresentations concerning surrender penalties associated with variable annuities.
Additionally, on May 21, 2001, a customer was awarded $147,238.00 against Ohlhaber after alleging the failure to supervise registered representatives. On February 13, 2012, Ohlhaber settled a customer dispute for $18,000.00 after the customer alleged that Ohlhaber made unsuitable investment recommendations pertaining to life settlement contracts.
In fact, things went deep south when Ohlhaber was barred by Financial Industry Regulatory Authority (FINRA) in a Decision and Order of Offer of Settlement containing findings that Ohlhaber made unsuitable investment recommendations pertaining to life settlement contracts. Department of Enforcement v. Richard Martin Ohlhaber, No. 2013035035901 (Jan. 27, 2014).
According to the Order, Ohlhaber made recommendations to investors regarding purchases of life settlement contracts, and facilitated purchases for investors in return for compensation. Apparently, Ohlhaber received commissions exceeding $300,000.00 per facilitating the purchase of such products which had not been approved through the firms that Ohlhaber was associated with at the time of the purchases being made.
The Order further indicated that Ohlhaber’s conduct constituted outside business activities that were misrepresented to two of the firms he was associated with, and the firms had not received written notification from Ohlhaber regarding his engagement in such activities. Ohlhaber reportedly failed to truthfully respond via his recorded testimony before FINRA in an investigation into his misconduct. Ohlhaber was found by FINRA to have violated FINRA Rules 8210 and 2010, as well as NASD Rules 3030, 2370, and 2110.
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