Ex-Suntrust Advisor Eddy Blizzard Sentenced to Prison

Eddy Ray Blizzard, a Maryland financial advisor, was reportedly sentenced to 42 months in federal prison for stealing approximately $1 million from an elderly client. Over the years, Blizzard allegedly exploited the trust of his client, by obtaining signed blank checks and purportedly withdrawing funds from the retirement accounts for his personal use.

The FBI and the FHFA OIG conducted the investigation, according to a press release.

Theft from Retirement Accounts

In April 2021, Blizzard was charged with taking approximately $1.4 million in distributions taken from the customer’s retirement accounts, between January 2013 and August 2019. According to the charges, this allegedly caused a $63,000 federal income tax bill for the customer.

Between April 2016 and April 2019 Blizzard allegedly deposited 112 checks from his customer’s account into his own individual account and an account he held jointly with his wife, according to the Attorney’s Office.

Further, the customer wrongly believed that Bizzard was handling his mortgage payments, but since he was not, the customer’s home went into foreclosure in 2019. The customer then passed away in 2020.

Blizzard was facing 20 years in federal prison if convicted for wire fraud and aggravated identity theft and a mandatory sentence of two years, consecutive to any other sentence, for aggravated identity theft, according to the Attorney’s Office.

FINRA BrokerCheck – Eddy Blizzard

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with The Financial Industry Regulatory Authority (FINRA).

According to Blizzard’s FINRA BrokerCheck profile, Blizzard was affiliated with Suntrust Investment Services until 2017 when he was reportedly discharged for alleged violations of “trade execution and error reporting.”

FINRA reportedly suspended Blizzard from the securities industry after alleged failure to comply with an arbitration award or settlement agreement or to respond to a request for information in June 2018, according to the regulator.

Failure to Supervise

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

Free Consultation

If you are concerned about investments with Eddy Blizzard, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.