FINRA announced that it barred former Waddell & Reed Inc. broker Paul Stanley, who was dismissed by Wadell & Reed in January 2016 for failing to comply with the company’s professional conduct, supervisory, and compensation policies. Stanley failed to show up for on-the-record testimony sought by the regulator. He, however, reached a settlement with FINRA, neither admitting nor denying its findings.

Paul Stanley’s BrokerCheck states that he “failed to provide complete information during the firm’s internal investigation.” Additionally, he “allowed” a representative “who was not properly licensed to participate in solicitation of investment advisory business” and “directed” a representative “to conduct firm business during an internal firm-imposed administrative suspension.” Further, Stanley “directly compensated” representatives “outside of firm compensation policies.”

Stanley began working in the securities industry in 1998. He was registered with eight firms before registering with Waddell & Reed in 2013. Those firms include J.P. Morgan Securities LLC; Chase Investment Services Corp.; Lincoln Financial Advisors Corporation; UBS Financial Services, Inc.; UVEST Financial Services Group, Inc.; Vision Investment Services, Inc..; Raymond James Financial Services, Inc.; and Dean Witter Reynolds Inc.

Securities firms have policies and procedures in place for a reason: to protect their clients. When brokers failed to comply with these policies and procedures, it can potentially have catastrophic effects on their clients. The Frankowski Firm has years of experience representing investors who have lost money as the result of brokers’ schemes. If you or someone you know has lost money as a result of such a scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.