Integrated Trading And Investments Financial Advisor Wayne Thaler Overcharged Clients in Metter, Georgia

A Georgia financial advisor, Wayne Thaler, has been barred from the brokerage industry for three months for charging inflated commissions on the sale of penny stocks.

The Financial Industry Regulatory Authority (FINRA) regulates brokerage firms, and limits how much they can charge clients for securities transactions. Generally, markups should be under 5%. Mr. Thaler, however, charged customers commissions above 15% for transactions involving penny stocks.

Sometimes, higher commissions make sense when a brokerage firm bears risk in filling a customer’s order, but these transactions—called riskless principal transactions—carried, as the name implies, no risk whatsoever.

In addition to suspending Mr. Thaler, FINRA also considered a monetary fine, but decided not to impose one because of Mr. Thaler’s poor financial condition.

One important question about this situation is not answered in FINRA’s settlement agreement with Mr. Thaler: how did his employer, Integrated Trading and Investments, fail to catch these excessive commissions?

Under FINRA rules, brokerage firms are required to take reasonable steps to supervise their financial advisors. Where was the supervision here? It seems that Integrated Trading’s computer systems should have flagged these transactions.

Perhaps a better question is what Integrated Trading was thinking when they hired Mr. Thaler in the first place. Looking at Mr. Thaler’s employment history, it appears that most of the firms that hire him are shady; FINRA shuttered several of them. For example:

• Mr. Thaler worked for TWS Financial from May 2011 to July 2012. FINRA expelled this firm from the securities industry in December 2012.
• Mr. Thaler worked for Lloyd, Scott & Valenti from April 2001 to May 2004. FINRA expelled this firm from the securities industry in October 2004.
• Mr. Thaler worked for Equitrade Securities from November 1999 to February 2000. FINRA expelled this firm from the securities industry in July 2003.
• Mr. Thaler worked for Saloman Grey Financial from April 1999 to October 1999. FINRA expelled this firm too.
• Mr. Thaler worked for Investor Associates from January 1996 to April 1997. FINRA expelled this frim from the securities industry in May 1998.
• Mr. Thaler worked for VTR Capital from May 1995 to January 1996. FINRA expelled this firm too.
• Mr. Thaler worked for I. A. Rabinowitz & Co. in 1995. FINRA expelled this firm too.

Why would any self-respecting brokerage firm hire a financial advisor that had worked for seven different firms that had all been so terrible they were kicked out of the brokerage industry?

If Mr. Thaler’s misconduct harmed any other investors, Integrated Trading could face claims, not only for negligent supervision, but also for negligent hiring.

If you have questions about investment losses, the securities litigation attorneys at Investor Defense Law LLP may be able to help, and offer free initial consultations.

Investor Defense Law LLP is a law firm dedicated to helping investors in California, Georgia, and Washington State recover investment losses.

We understand investment fraud and financial advisor malpractice. Our lawyers know how to sue investment advisors, brokerage firms, and financial advisors. To receive a free case evaluation, contact an investment fraud attorney at 800.487.4660.