Written by The White Law Group• May 3, 2019• 1:41 pm• Blog, Current Investigations

John W. Cutshall | Broker Investigation

John W. Cutshall Broker Invesgtigation, Featured by Top Securities Fraud Attorneys, The White Law Group

John W. Cutshall of Lombard Securities Barred

Have you suffered losses investing with John W. Cutshall in Woodsboro, MD? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against his employer.

FINRA filed a complaint against Cutshall alleging that he abused his position as trustee for trusts that he administered on behalf of separate customers, a married deceased couple and an elderly then 91-year widow, by allegedly converting and improperly using funds from these trusts.

FINRA alleges that in total, Cutshall reportedly wrote checks for approximately $400,000 from the account of the deceased customers’ residuary trust and purportedly deposited the checks into his personal bank account.

The complaint also alleges that Cutshall administered a trust for the benefit of the elderly customer and allegedly withdrew and used $2,000 in customer funds for his own benefit.

FINRA further alleges that Cutshall actively thwarted his firms’ ability to supervise his conduct, including purportedly making a misrepresentation in his annual compliance questionnaire issued by his firm. Without admitting or denying the allegations, Cutshall reportedly consented to the sanction and to the entry of findings. Consequently, FINRA has apparently barred him from working in the securities industry.

According to his FINRA BrokerCheck report, Cutshall was reportedly affiliated with Lombard Securities in Woodsboro, MD from July 2014 until April 2019 when he was discharged for the above allegations. Prior to that, he was registered with Morgan Stanley in Frederick, MD.

From the report he appears to have 5 disclosures on his record including 2 employment separations, 2 regulatory actions and a personal bankruptcy.

Investigating Potential Lawsuits

The White Law Group is investigating potential claims involving Cutshall and the liability his former employers may have for failure to properly supervise him.

Under FINRA rules and regulations, Broker-Dealers are responsible for supervising the actions of those advisors registered with their firm, and therefore may be held liable for the actions of their Broker(s).

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.

We represent investors in FINRA arbitration claims in all 50 states, including Maryland . Our attorneys have recovered millions of dollars from many brokerage firms in the past.