Securities Investigation – Jeffrey Krupnik and Wells Fargo
According to the Financial Industry Regulatory Authority, a FINRA hearing panel has barred former advisor Jeffrey Krupnick for stealing $143,000. The funds were reportedly taken from a joint brokerage account he held with a client who was his half-brother.
Former Wells Fargo advisor, Jeffrey Krupnick, opened eight brokerage accounts for his much older sibling, one of which was the jointly owned account, according to FINRA.
Krupnick allegedly transferred funds from his brother’s other Wells Fargo accounts and deposited them into the joint account, over a period of three years. He purportedly used a majority of the money for personal expenses, including paying off credit card debts, funding home improvements and paying wedding expenses, FINRA claimed.
According to FINRA, Krupnick allegedly misappropriated some $143,000 of his brother’s funds for his own use without his brother’s knowledge or approval. His brother is 20 years older than Krupnik and had been semi-retired since the late 1990s, says FINRA.
Krupnik’s BrokerCheck report states that he was most recently registered with Ameriprise Financial from August 2015 until October 2017 when he voluntarily resigned while under suspension. Krupnick worked for Wells Fargo in Sarasota, Florida from May 2009 to November 2014, when he voluntarily resigned. In a statement in his BrokerCheck report, Krupnick says that his brother’s complaint stemmed from a “family feud” and denied any wrongdoing with regard to how his accounts were managed.
Wells Fargo mediated a settlement in which Krupnick reportedly repaid his brother $121,000, funds he claimed his brother had loaned him, and Wells Fargo contributed $22,000 to make him whole, according to FINRA.
The FINRA hearing panel ordered Krupnick to pay $4,435 for the cost of hearing transcripts and other fees, in addition to barring him. If he does not appeal the decision, it becomes final on February 26.
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.
Are you concerned about investments made with Jeffrey Krupnik? If so, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
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 Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.
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