Troy Christopher Baldridge of Richmond Virginia a stockbroker formerly employed by Capitol Securities Management Inc. has been barred by Securities and Exchange Commission (SEC) from associating with any investment adviser or broker in any capacity according to an Order Instituting Administrative Proceedings containing findings that Baldridge misappropriated customer funds. In the Matter of Troy C. Baldridge File No. 3-18430 (Apr. 9, 2018).
Baldridge reportedly pled guilty to committing mail fraud; conduct violative of 18 U.S.C. § 1341. United States v. Troy C. Baldridge, Case No. 3:16-cr-00148-HEH (Dec. 13, 2016). In the process of pleading guilty, Baldridge consented to findings that between September of 2011 and July of 2016, Baldridge misappropriated $505,665.13 from customers of Capitol Securities Management.
The Order revealed that in fifteen circumstances, funds had been transferred from the investment accounts owned by customers to banking accounts owned by Baldridge so that the funds could be utilized for Baldridge’s personal use. Evidently, customers were not notified about Baldridge’s activities, and no consent had been procured by Baldridge to effect the transfers. Moreover, Baldridge effected the transactions by forging signatures of customers on documentation, and lied about his activities when customers raised suspicions about the transactions. According to the Order:
On December 13, 2016, Baldridge pleaded guilty to one count of mail fraud in violation of 18 U.S.C. § 1341 before the United States District Court for the Eastern District of Virginia, in United States v. Troy C. Baldridge, Case No. 3:16-cr-00148-HEH. On March 13, 2017, the Court sentenced Baldridge to 41 months imprisonment followed by three years of supervised release, and ordered Baldrige to pay restitution.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that prior to the SEC Order, Baldridge was barred by FINRA from associating with any FINRA member in any capacity based upon allegations that he failed to provide FINRA with information that was requested of him. Case No. 2016051017701 (Dec. 12, 2016). Baldridge was apparently suspended on October 3, 2016. FINRA provided Baldridge with three months to provide documentation to lift the suspension; however, Baldridge failed to cooperate.
Baldridge was discharged by Capitol Securities Management on August 15, 2016.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
