Erez Law is investigating claims regarding Claus Christoph Foerster (CRD #1912949, Spartanburg, South Carolina). Foerster recently entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) in which he permanently was barred from association with any FINRA member firm. See FINRA Case #2014041483401. Foerster was associated with Raymond James & Associates, Inc., from February 2013 until his termination in June 2014. Foerster previously was associated with Morgan Keegan & Co., Inc., (February 2008 through February 2013) and Citigroup Global Markets (July 1997 through February 2008).
FINRA found that beginning in 2000, Foerster solicited his securities customers to invest in an entity called S.G. Investments, which he marketed as an income-oriented investment. Foerster instructed customers to move funds from their brokerage accounts to their personal bank accounts via wire or electronic funds transfer. Foerster then instructed the customers to write checks from their personal bank accounts, made payable to “S.G. Investments,” according to FINRA. FINRA further found that S.G. Investments was not an investment fund, but a bank account controlled by Foerster. FINRA also found that Foerster provided some of the customers with fictitious account statements, and provided at least two customers with purported dividend payments on a monthly basis. In all, FINRA found that Foerster converted approximately $3 million from 13 customers. In entering into the AWC, Foerster neither admitted nor denied FINRA’s findings.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Raymond James, Morgan Keegan and Citigroup may be liable for investment or other losses suffered by Foerster’s customers.
If you invested in S.G. Investments or were a client of Foerster, Raymond James, Morgan Keegan, or Citigroup, and have suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”
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