Walter Bish, Smith Brown Broker, Suspended over ETN Strategy
Walter Bish (CRD# 3214712), a broker registered with Smith Brown & Groover, inappropriately recommended exchange-traded notes, according to a recent disciplinary action. MDF Law is investigating the Macon, Georgia-based financial professional for similar conduct. If you have concerns regarding investments in your accounts, call today for a free, confidential consultation with our attorneys.
To learn more about Mr. Bish’s disciplinary history, continue reading this post. The information below can be found in his BrokerCheck profile, a Financial Industry Regulatory Authority record examined on February 12, 2025.
FINRA Sanction Alleges Inappropriate ETN Strategy
On November 6, 2024, FINRA announced a disciplinary action against Mr. Bish. According to a Letter of Acceptance, Waiver, and Consent (#2019063352403), the regulator found that he recommended a trading strategy involving products he did not fully understand. More specifically, FINRA alleged that the strategy involved an exchange-traded note, and that he did not “conduct his own due diligence” on either the strategy or the ETN. “For example,” the Letter asserts, “he was not aware that the ETN used in the trading strategy could be accelerated or terminated, or under what circumstances that could occur.”
Between July 2014 and February 2018, FINRA alleged, he recommended the strategy in question to seven customers. The strategy involved an ETN that was “high-risk, complex, and designed to manage daily trading risk.” Its own prospectus stated that it “may not be suitable for investors who planned to hold it for longer than one day.” The issuer also disclosed that investors “could lose all of their investment during a spike in volatility.”
Walter Bish Fined, Suspended for 3 Months
Mr. Bish’s recommendation of this strategy, the regulator found, violated FINRA Rules 2111 and 2010. He did not admit to or deny these findings, but he did consent to their entry. He also consented to the imposition of two sanctions: a fine of $5,000 and a three-month suspension from registering with any member firm in all capacities. His suspension commenced on December 2, 2024 and will lift on March 1, 2025.
Firm Settled ETN Dispute for 6 Figures
In addition to the above-described FINRA disciplinary action, Mr. Bish’s BrokerCheck record also discloses an investor dispute. On May 23, 2019, an investor lodged a claim alleging that he breached his fiduciary duty, recommended unsuitable investments, made misrepresentations and omissions, and engaged in negligence with regard to variable annuities and volatility-linked ETNs. In December 2022, his member firm settled the dispute for a total of $425,000.
FINRA: Broker Based in Macon, Georgia
Mr. Bish started working as a broker in 1999, when he joined Smith Brown & Groover. He remains at the firm today, based at its office in Macon, Georgia. With 25 years of experience as a broker, he has completed three industry exams, including the Series 7 and the Series 63. He is currently suspended from associating with any FINRA member.
At MDF Law, We Stand Up for Investors
MDF Law has recovered tens of millions in losses for the victims of broker fraud. If you have concerns regarding exchange-traded notes or other investments recommended by Walter Bish, call us for a free consultation. Our team accepts cases on contingency, meaning clients only pay a fee if they successfully recover losses: no hourly fees. Call 800-767-8040 to speak with a lawyer today.