Investors Bring FINRA Securities Arbitration Claim Against Stifel Nicolaus For Selling Away
Joseph Hersey Pratt (also known as Joseph Butcher and as J.H. Pratt) of Conshohocken Pennsylvania a stockbroker formerly employed by Stifel Nicolaus is the subject of a customer initiated investment related arbitration claim where the customer sought $232,000.00 in damages founded upon allegations of the violation of Section 517 of the Florida Securities and Investor Protection Act and violation of Financial Industry Regulatory Authority (FINRA) Rules 2111, 2020 and 2010. FINRA Arbitration No. 20-01859 (June 12, 2020).
According to the claim, the customer sustained losses from Pratt’s negligence and unsuitable investment recommendations regarding mutual funds and stocks. A fiduciary duty that was owed to the customer had been breached during the period that Pratt was associated with Stifel Nicolaus.
Pratt has been identified in three additional customer initiated investment related disputes regarding accusations of his bad sales tactics while employed by Wells Fargo. FINRA Public Disclosure reveals that a customer initiated investment related complaint concerning Pratt’s activities has been settled for $48,547.75 in damages supported by allegations of the stockbroker’s concealment of sales charges at the time that mutual fund trades were placed in the customer’s account at Wells Fargo Advisors.
On March 27, 2018, a customer initiated investment related complaint pertaining to Pratt’s conduct was settled for $20,000.00 in damages based upon accusations that the customer’s instructions were disregarded by Pratt as he placed the customer in speculative foreign-equity investments during the time that he was associated with Wells Fargo.
Pratt has been barred from associating with any FINRA member in any capacity based in part upon findings of private securities transactions by Pratt at Wells Fargo. Letter of Acceptance Waiver and Consent No. 2014043750301 (Sept. 24, 2019). According to the AWC, six investors were solicited by Pratt to collectively purchase $436,000.00 in a speculative company which failed. Pratt was not authorized by Wells Fargo to sell its customers the investments in the company. FINRA determined that Pratt violated FINRA Rule 2010 and NASD Rule 3040.
Pratt was discharged by Wells Fargo founded upon allegations of him selling away from the securities broker dealer. He was registered with Stifel Nicolaus until September 24, 2019 at which time he was discharged because of being barred by FINRA.