FINRA Sanctions PFS Stockbroker For Violating Suspension
Daniel William Staudacher of Dallas Texas a stockbroker formerly registered with PFS Investments Inc. has been fined $10,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Staudacher violated the terms of a previously imposed FINRA suspension for unauthorized trading in PFS Investments customer accounts. Letter of Acceptance Waiver and Consent No. 2017053574801 (July 5, 2019).
FINRA Public Disclosure reveals that the first time Staudacher was sanctioned by FINRA, he was fined $5,000.00 and suspended for one month from associating with any FINRA member in any capacity based on findings that he effected transactions in customer accounts. Letter of Acceptance Waiver and Consent No. 2016048603001. (Jan. 12, 2017). According to the AWC, the customers had not been contacted by Staudacher prior to transactions being effected in their accounts. FINRA also stated that Staudacher corresponded with customers in a manner which violated the firm’s policies. In addition to being fined by FINRA for his misconduct, he was subject of $10,000.00 in sanctions by PFS Investments Inc.
During the time Staudacher was suspended, he reportedly engaged in securities business in violation of the suspension FINRA imposed. The AWC stated that Staudacher was notified by PFS Investments that he was neither permitted to engage in any contact with the firm’s customers in reference to investments nor take part in any securities business because of FINRA’s suspension. The firm specified that administrative functions connected to any securities business had also been prohibited.
FINRA learned from PFS Investments that Staudacher failed to comply with the terms of the suspension given Staudacher placing customers’ signatures on investment applications that had been submitted by him to the firm. Specifically, the AWC stated that a customer’s securities application was submitted by Staudacher through PFS Investments’ systems. Two college savings plans applications had also been reviewed and approved by Staudacher. FINRA detailed that Staudacher facilitated a customer’s retirement account transfer in which he submitted documentation to a company with a check written out for more than $162,000.00 to effect the transaction. The AWC additionally stated that redemption requests had been submitted by Staudacher instead of through the stockbroker who was the assigned person on the customer’s account specifically because of Staudacher being suspended.
FINRA found that Staudacher’s activities demonstrated that he conducted securities business during the time that he was prohibited by FINRA which was violative of FINRA Rule 2010; his ongoing association with PFS Investments Inc. while under suspension was violative of FINRA By-Laws Article III Section 3(b); and his electronic submission of account documentation containing forged customer signatures, which precluded customers from completely reviewing documents according to the firm’s policies, was violative FINRA Rule 2010.
FINRA Public Disclosure additionally reveals that Staudacher is the subject of a customer initiated investment related written complaint which settled on January 15, 2016 to resolve allegations that Staudacher effected unauthorized mutual fund trades in the customer’s account during the time that he was associated with PFS Investments.
Staudacher’s registration with PFS Investments has been terminated as of September 20, 2017. Since September 26, 2017, he has been associated with Worth Financial Group Inc.