William Weisbrod Barred over Allegedly Risky Strategy
William Weisbrod (CRD# 812664), formerly a broker registered with Purshe Kaplan Sterling, breached his fiduciary duties, according to a recent disciplinary action. MDF Law is currently investigating the Fairfield, New Jersey-based financial professional for similar conduct. We encourage investors with concerns to contact us immediately.
For more information about the allegations against Mr. Weisbrod, who is currently an investment adviser with Key Client Fiduciary Advisors, continue reading. This post is based on information in his BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record accessed on December 20, 2023.
FINRA Sanction Alleges Breach of Fiduciary Duty, Undisclosed Payments
FINRA sanctioned Mr. Weisbrod on August 2, 2023. According to a Letter of Acceptance, Waiver, and Consent (# 2020065297001), he breached his fiduciary duty to a community bank where he acted “as an advisory director and consultant.” FINRA found that he directed the bank to participate in an investment strategy that “generated revenue for Weisbrod but exposed the bank to excessive risk and unnecessary trading costs.” He allegedly recommended the bank open brokerage accounts with a representative in his office. He directed the trading in these accounts, according to FINRA, even as he informed the firm that he wouldn’t be involved with them. In this capacity, he allegedly led a “risky trading strategy involving fixed-income securities.” This strategy resulted in more than $1 million in commission payments to the bank’s representative of record, “who directed more than $370,000” to Mr. Weisbrod. He allegedly did not disclose these payments to the bank.
All told, FINRA found, his conduct resulted in more than $1 million in “additional markups” paid to a third-party broker who acquired investments for the bank, as well as more than $600,000 in payments “to remediate the risk” in the bank’s accounts. FINRA also found that during a firm inquiry into Mr. Weisbrod’s outside business activity with the bank, he “falsely represented” that he had no involvement in its investments. While he did not admit to or deny these findings, he consented to their entry. He also consented to an indefinite bar from associating with any FINRA member firm in any capacity.
Past Sanction Alleged Unsuitable Trades
The above-described FINRA sanction is not the only one in Mr. Weisbrod’s past. In 2009, FINRA sanctioned him over findings that he recommended and executed unsuitable mutual fund trades in a customer’s account. FINRA ordered him to pay a fine of $33,500 and suspended him for a period of two months.
Investor Dispute Settled for 6 Figures
In August 2021, an investor filed a dispute alleging that Mr. Weisbrod breached his fiduciary duty, committed fraud, and recommended unsuitable transactions. In January 2023, his former member firm settled the dispute for $425,000.
FINRA: William Weisbrod Based in Fairfield, New Jersey
William Weisbrod launched his career as a broker when he joined Bache & Company in 1975. Over the following years, he worked at firms including Bache Halsey Stuart, Merrill Lynch, and Wachovia Securities. He registered with his most recent broker-dealer firm, Purshe Kaplan Sterling, from 2009 until 2021. While he is barred from acting as a broker, he is registered as an investment adviser with Key Client Fiduciary Advisors in Fairfield, New Jersey. He does business as Foremost Advisors Wealth Management.
Investment Losses? MDF Law Has Your Back
If you lost money on investments recommended by William Weisbrod, please contact MDF Law. Our dedicated securities attorneys have recovered more than $100 million in investment losses for our clients. We offer free consultations across the United States and only receive a fee if you win your case. Call us at 800-767-8040 for a free consultation today.