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Florida Financial Advisor Barred From Securities Industry for Converting Customer Funds

On January 8th, 2018, the Financial Industry Regulatory Authority (FINRA) Office of Hearing Officers issued a decision in the disciplinary proceedings against Florida securities broker Jeffrey E. Krupnick (CRD#: 4307569). Mr. Krupnick was most recently employed at Ameriprise financial services (2015-2017) and Wells Fargo Advisors, LLC (2008-2014). For both broker-dealers, Mr. Krupnick was based in Sarasota, Florida.

In this post, our Miami financial advisor fraud attorneys highlight some of the key details from this FINRA decision. All information contained within this article comes directly from FINRA. For the full details regarding the disciplinary decision against this securities broker, please refer to Disciplinary Proceeding No. 2014043869901. 

Extended Hearing Panel Decision: Florida Broker Jeffrey E. Krupnick  

The Allegations Against this Broker  

While employed as a registered securities broker at Wells Fargo Advisors, LLC,  Jeffrey E. Krupnick provided services for an investor that is known in FINRA documents only as ‘MK.’ According to the FINRA disciplinary records, Mr. Krupnick managed multiple accounts for this investor. Between January of 2012 and February of 2014, Mr. Krupnick is alleged to have withdrawn $143,000 from one of these accounts. The allegations indicate that this withdrawal of funds was not authorized by the investor. Further, FINRA’s Department of Enforcement contends that Mr. Krupnick made personal use of the money.

By the middle 2014, MK had filed an official complaint with the brokerage firm, Wells Fargo Advisors. In response to an inquiry into the issue, Mr. Krupnick informed his employer that he did make the withdrawal, but that it was authorized. Wells Fargo stepped in and resolved the dispute with the investor, agreeing to make the customer whole. Shortly after the company began its investigation into the matter, Mr. Krupnick resigned from this firm. 

Proposed FINRA Sanctions  

Upon hearing the case, the FINRA panel determined that there was sufficient evidence supporting the investor’s allegations that Mr. Krupnick illegitimately converted his funds for personal use. While the investor was able to produce some communications with this financial advisor that suggested that the advisor did not have proper authorization for any transfers or loans, Mr. Krupnick was unable to any produce evidence that the hearing panel found to be reliable to support his claim that he did, in fact, have authorization for the withdrawals. As a result of its findings, the Panel ruled that Jeffrey E. Krupnick has been barred from associating with any FINRA member firm in the future. He was also ordered to pay more than $4,400 in legal costs.

Speak to a Miami Securities Fraud Lawyer Now  

At Carlson & Associates, P.A., we are committed to protecting the rights and interests of investors in South Florida. If you believe that you have been the victim of investment fraud, financial advisor negligence, or brokerage firm negligence, please contact our law firm today. We are located in Miami, and we proudly represent investors throughout the wider region, including in Lake Worth, Boynton Beach, Boca Raton, Miramar, Fort Lauderdale, and West Palm Beach.

Resources:

brokercheck.finra.org/individual/summary/4307569

finra.org/sites/default/files/fda_documents/2014043869901%20Jeffrey%20E.%20Krupnick%20CRD%204307569%20OHO%20jm.pdf

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