Richard Shotz Broker Investigation

Financial Advisor Richard Shotz, Wells Fargo Clearing Services in Daytona Beach, FL

According to disclosures on the Financial Industry Regulatory Authority (FINRA) website, the regulator has reportedly indefinitely suspended financial advisor Richard Shotz from the securities industry after he “failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”

According to a regulatory action in January 2018, Shotz allegedly engaged in an unsuitable pattern of short-term trading of unit investment trusts (UITs) in his customers’ accounts.

Shotz, in connection with 486 customer accounts, allegedly recommended that the customers purchase UITs and then sell these products well before their maturity dates, according to FINRA’s findings.

Most of the UITs that Shotz purportedly recommended had maturity dates of at least 24 months and carried sales charges ranging from 1.95% to 3.95%, but Shotz allegedly recommended that his customers sell their UIT positions less than a year after purchase, according to FINRA’s findings.

The average holding period for the UITs purchased in these customers’ accounts was 143 days, according to FINRA.  Further, Shotz purportedly recommended on approximately 1,200 occasions, that his customers use the proceeds from the short-term sale of a UIT to purchase another UIT with identical investment objectives. Shotz’s recommendations allegedly caused the customers to incur unnecessary sales charges, and were purportedly unsuitable in view of the frequency and cost of the transactions.

According to his FINRA broker profile, Shotz was reportedly registered with Wells Fargo Clearing Services in Daytona Beach, FL from October 2015 until March 2018 when he was reportedly discharged for the above allegations. Prior to that, he was registered with Morgan Stanley in Ormond Beach, FL for six years.  His broker profile also indicates that he reportedly has six customer complaints filed against him during his career in the securities industry.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Shotz’s former employers may have for failure to properly supervise him.

When brokers violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. 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 White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Florida. If you are concerned about your investments with Richard Shotz, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.