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Regulation and Compliance > Federal Regulation > FINRA

Ex-Schwab Rep Barred for Stealing, Reselling $1M in Office Equipment

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A former financial consultant with Charles Schwab (SCHW) has been permanently barred from the industry after selling about $1 million of office equipment.

At the time Schwab discharged him, the broker also faced conspiracy charges in Florida related to sales of oxycodone and the illegal use of a communications device, Financial Industry Regulatory Authority records say.

“[Jeffrey Brian] Grove, on multiple occasions between February and August 2014, utilized the firm’s corporate procurement system to purchase office equipment for his branch office,” according to the FINRA letter of acceptance, waiver and consent (AWR), signed earlier this week by an enforcement official.

Grove “physically removed the equipment from his office and sold the items to different individuals … [for] approximately $1 million, for his own use and benefit,” the document said.

Based in Melbourne, Florida, Grove was a Schwab employee for over 15 years. He had about 250 clients.

The ex-broker began working for Schwab in 1997 and became a licensed broker in July 1999, according to the FINRA letter.  He was discharged by Schwab on Aug. 29, 2014, and the firm filed a U-5 form to terminate the relationship on Sept. 25.  

FINRA records also show that Grove had a felony conviction for possession of more than 20 grams of cannabis in early 1997 and was on probation for 18 months. 

Schwab says it “has cooperated fully with law enforcement.”  The firm adds that “after a very thorough review of client accounts, there is no evidence of any client impact as a result of Mr. Grove’s illegal activities.”

According to FINRA Rule 2010, a “member in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade. Accordingly, because Grove converted approximately $1 million in firm funds, he violated FINRA Rule 2010.”

— Check out SEC, DOL Enforcement: Ex-Mayor Fined for Misleading Movie Studio Investors on ThinkAdvisor.


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