Steven William Kraut of Saint Anthony Minnesota a stockbroker formerly registered with Independent Financial Group LLC has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in undisclosed outside business activities. Letter of Acceptance Waiver and Consent No. 2017053289701 (July 10, 2018).
According to the AWC, from January of 2012 to April of 2016, Kraut reportedly undertook responsibilities concerning the personal matters of a customer of Independent Financial Group, LM. The AWC stated that Kraut engaged in services which included helping LM handle issues of LM’s late husband’s estate. LM evidently provided Kraut a total of $27,500.00 for Kraut’s assistance. Yet, Kraut failed to inform Independent Financial Group about his arrangement with LM. The AWC also revealed that Kraut falsely stated that he neither accepted funds from customers nor deposited any customer funds in accounts controlled by him. FINRA found Kraut’s conduct violative of FINRA Rule 2010 and 3270.
FINRA Public Disclosure additionally reveals that a customer filed an investment related arbitration claim concerning Kraut’s activities where the customer requested $500,000.00 in damages founded on allegations of unauthorized transactions, breach of fiduciary duty and suitability pertaining to the customer’s investment in oil & gas products and a direct investment program. FINRA Arbitration No. 17-02222 (Sept. 12, 2017).
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