SEC Bars Stifel Nicolaus Stockbroker For Misappropriation
Steven Dale Rodemer of Pueblo Colorado a stockbroker formerly registered with Stifel Nicolaus Company Incorporated is the subject of a Securities Exchange Commission (SEC) Administrative Order in which he has been barred from being a stockbroker or investment adviser representative and has been barred from being employed by any securities broker dealer or investment advisory founded on allegations of Rodemer misappropriating $451,889 in customer funds. In the Matter of Steven D. Rodemer Administrative Proceeding File No. 3-19989 (Sept. 11, 2020).
The SEC Order comes after Rodemer was issued a final order enjoining him from engaging in future violations of Investment Advisers Act Sections 206(1) and 206(2). Civil Action No. 1:20-cv-02687 (D. Colo. Sept. 9, 2020).
The Order also comes after SEC charged Rodemer with misappropriating customer funds. The regulator alleged that between 2012 and 2019, Rodemer was an elderly customer’s investment adviser and authorized agent under a power of attorney. But Rodemer’s relationship with the customer was not authorized by Stifel Nicolaus.
The Order indicated that Rodemer took advantage of the customer by writing checks out to himself from the customer’s bank and brokerage accounts. He would tap the customer’s account to pay his personal expenses and would withdrawal money at ATMs. These monies were not used for the benefit of the customer but were instead used for making improvements to his vacation home and to invest within brokerage accounts owned by Rodemer’s spouse.
This is not the first time that Rodemer has been sanctioned by a securities regulator. In fact, Rodemer has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he obstructed a FINRA investigation into whether he misappropriated a customer’s funds. Letter of Acceptance Waiver and Consent No. 2020065336501 (Mar. 26, 2020).
The AWC stated that Rodemer was not cooperative with FINRA’s requests from March of 2020 where he was asked to testify regarding his involvement with a customer who was referenced by Stifel Nicolaus when it explained to FINRA why it discharged Rodemer. Stifel Nicolaus notified FINRA on January 21, 2020 that Rodemer took money for his own use and without the customer’s authorization. The AWC stated that Rodemer was asked on March 20, 2020 to appear for testimony to answer these allegations. Rodemer’s legal counsel informed FINRA that Rodemer would not oblige. Rodemer did not appear for testimony in violation of FINRA Rules 2010 and 8210.
Rodemer was registered with Stifel Nicolaus between November 10, 2011 and January 21, 2020.