Podcast Center
Video Center
Webcasts
Resource Center
Events
September 30, 2016 at 10:18 AM
Regulators have ruled that a former advisor who declared bankruptcy earlier this year must pay $600,000 to an older couple he fraudulently took $150,000 from several years ago, and must cover some $18,000 in attorney’s fees.
Jerome S. Krause, who was barred from the industry in August, worked for First Heartland Capital of Memomonee Falls, Wisconsin, from 2005 to 2012, according to FINRA BrokerCheck.
The husband and wife filing the claim against Krause—Joyce and Keith Reuter, who are in their 80s—say he “used his position of trust and [their] vulnerability as older adults to siphon money from them under the guise of ‘loans,’ as part of a false and fraudulent scheme,” according to the Financial Industry Regulatory Authority arbitration deal, which was finalized Wednesday.
Furthermore, the couple says in addition to “borrowing” over $150,000, the ex-broker “without their knowledge or consent… liquidated some of their investment to finance his loans, which resulted in income tax liabilities and surrender charges,” the document says.
