On Monday, in North Dallas, Texas, a disgruntled investor paid a visit to his stockbroker and investment advisor’s office, with a 45 caliber weapon, yelling “you lost all my money,” and is alleged to have shot his broker and the broker’s son, before taking his own life.

According to the Fort Worth News, Robert Mustard, Jr., (a disbarred lawyer), is alleged to have shot his stockbrokers Richard Smith, 66, in the leg, and his son, Christopher Smith in the neck. Both are in stable condition. Mr. Mustard later died, as a result of his self-inflicted wound. Mr. Mustard apparently did lose “all of his money” and was found by the police to have ridden his bicycle to the brokers’ branch office.

Mustard was facing charges of aggravated assault but according to Texas police, since Mr. Mustard is dead, they decided not to charge him. Authorities have said that Mustard, a longtime client of Richard Smith, was angry with them over business dealings. The specific nature of the disagreement has not been made public.

FINRA Public Disclosure Records

FINRA Public Disclosure Records reveal that the older Mr. Smith, Richard Floyd Smith (CRD No. 718724), has been registered with WFG Investments, Inc. since May 1999, and was formerly associated with PaineWebber for a period of almost 20 years.

FINRA Discloses that Richard Floyd Smith has been the subject of at least two disclosed customer initiated investment related complaints, one in 2006, alleging the sale of unsuitable investments and the unauthorized trading of high yield bonds and seeking damages of $210,803. (FINRA Arbitration No. 05-03733). Prior to May 18, 2009, stockbrokers and their employers were only required to disclose securities arbitrations in which the stockbroker is named as a “party.”

Accordingly, customer initiated investment related complaints where a stockbroker is not named as a party, or Individual Respondent, but where their conduct was at issue generally remain undisclosed. The Financial Industry Regulatory Authority (FINRA), Office of Dispute Resolution, (formerly NASD Dispute Resolution, Inc.) reports that as of 2003, of the 663,000 registered representatives in the country in 2003, only 2,751 or 0.41 % have been the subject of three or more customer initiated investment related complaints or arbitrations.

Mustard’s Conduct Is Not Isolated

On June 29, 2009, A gang of pensioners who lost their savings in the credit crunch were accused of kidnapping and torturing their financial adviser. The broker, James Amburn was ambushed by two angry seniors, aged between 60 and 79, bound with tape and bundled into the trunk of their car, driven more than 280 miles, and imprisoned in a cellar for four days.

Amburn lost the angry investors’ money as a result of the sub-prime mortgage crisis, and claimed he was held almost naked in the cellar, fed soup twice a day and beaten. Mr Amburn said: “I was beaten. They threatened again and again to kill me.” The financial adviser saw his opportunity to appeal for help when he was allowed to send a fax to a Swiss bank asking for the money demanded by the gang.

Guiliano Law Firm

The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Firm, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.

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