FINRA Sanctions Cape May Stockbroker For Altering Documents
Christopher Thomas Hildebrandt of Cape May Court House New Jersey a stockbroker formerly employed by Principal Securities has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Hildebrandt altered documents to effect distributions and other transactions in customer accounts. Letter of Acceptance Waiver and Consent No. 2018060237801 (Aug. 21, 2020).
According to the AWC, from 2009 to 2017, about 90 documents had been altered by Hildebrandt at Principal Securities. The stockbroker doctored distributions forms, ACH transfer requests and new account documents all of which he submitted to Principal Securities to be processed. FINRA indicated that documents were falsified by Hildebrandt through his removal of information that was once contained on documents and through his reuse of customer signatures. The AWC stated that the amount stated on distribution forms had been altered by the stockbroker too. Hildebrandt’s actions affected 30 Principal customers.
FINRA noted that Hildebrandt had been warned by the securities broker dealer on at least two separate occasions to stop reusing customer signatures and altering information. This did not stop Hildebrandt from continuing to engage in the misconduct while at the company. FINRA determined that Hildebrandt’s falsifying of documents was violative of FINRA Rule 2010.
Hildebrandt has been identified in four customer initiated investment related disputes involving accusations of his misconduct while he was employed by securities broker dealers including Principal Securities and Princor Financial Services Corp. FINRA Public Disclosure reveals that Hildebrandt is referenced in a customer initiated investment related written complaint where the customer requested $10,400.00 in damages founded on allegations of Hildebrandt having misrepresented mutual fund and variable annuity transactions while at Princor.
On April 11, 2015, another customer filed an investment related complaint concerning Hildebrandt’s activities in which the customer sought unspecified damages based upon accusations of omissions being made by the stockbroker concerning the tax consequences of the Princor customer’s transactions. Hildebrandt is also the subject of a customer initiated investment related written complaint which was resolved for $7,414.23 in damages on April 20, 2018 supported by allegations that false information was provided to the customer concerning mutual funds for an individual retirement account.
On December 10, 2019, another customer initiated investment related complaint regarding Hildebrandt’s conduct was settled for $15,094.64 in damages founded on accusations that funds had been misappropriated from the customer’s account during the time that Hildebrandt was associated with Principal Securities. The complaint also alleges that unauthorized common and preferred stock transactions were executed in the customer’s account resulting in the customer’s losses.
On October 30, 2018, Hildebrandt was discharged by Principal Securities based upon allegations of his misuse of customer funds and his unauthorized transactions.