Can you recover investment losses due to recommendations by former Stifel, Nicolaus & Company, Incorporated broker Steven Rodemer (CRD# 830561)? He was registered with Stifel, Nicolaus & Company, Incorporated in Pueblo, Colorado, from 2011 to 2020, when he was terminated regarding, “In March 2020, FINRA barred him after he “consented to the sanction and to the entry of findings that he refused to provide on-the-record testimony requested by FINRA during its investigation into the conduct disclosed in a Form U5 submitted by his member firm. The findings stated that the firm submitted the Form U5 terminating Rodemer for taking money from a client account for his personal use without authorization.”
In September 2020, The Securities and Exchange Commission (SEC) alleged that “he abused his role as power of attorney to misappropriate hundreds of thousands of dollars from his elderly, widowed advisory client. Rodemer served as the investment adviser to the client and handled all of the client’s finances, including advising her on overall investment strategy and placing orders to execute this strategy. He also met with the client to discuss her finances, and had the authority to and did move money between her bank and brokerage accounts.” According to the SEC, “Rodemer took advantage of his position as the client’s investment adviser, and the power of attorney authority she granted him, by misappropriating $451,889 of her funds. Rodemer used the funds for a variety of personal expenses, including to cover construction and maintenance costs on his vacation home, to pay insurance premiums, to fund an undisclosed brokerage account in his wife’s name, to make credit card payments, and to pay for a number of other miscellaneous, everyday expenses like gas and groceries. Rodemer’s deceptive conduct continued even after he became aware that his misconduct was being investigated.” Furthermore, the SEC found that, “to avoid the consequences of his actions, Rodemer met with the client and had her sign a statement, which he prepared, noting that he had discussed his wrongdoing with her and identifying certain instances of his misappropriation. The statement, however, was incomplete and misleading, as it only disclosed the few transactions that Registrant had identified, and not the dozens of instances through which Rodemer had continually misappropriated funds from the client since 2012.”
In September 2020, the SEC entered a final judgement by consent against the broker, related to alleged misappropriation of a total of $451,889 from 2012 to 2019, while authorized as a power of attorney and serving as an investment adviser to an elderly client, outside of his employment at dually-registered broker-dealers and investment advisers. According to the SEC, “Rodemer used his position of trust to write checks to himself from the client’s brokerage and bank accounts, charge personal expenses on the client’s debit/credit card tied to the brokerage account, and withdraw cash from the brokerage account through ATM transactions. Rodemer used the money to make improvements on his second home and invest in an undisclosed brokerage account in his wife’s name, among other things.”
Steven Rodemer Customer Complaints
He has been the subject of two customer complaints between 1984 and 2022, according to his CRD report. The most recent complaint was regarding:
March 2022. “Against Stifel: aiding and abetting breach of fiduciary duty, negligent supervision of employee and breach of fiduciary duty. Against Rodemer: civil theft, breach of fiduciary duty, surcharge, civil fraud.” The customer is seeking $110,090.74 in damages, and the case is currently pending.
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, Stifel, Nicolaus & Company, Incorporated may be liable for investment or other losses suffered by Steven Rodemer’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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