The Financial Industry Regulatory Authority (FINRA) barred Claus Foerster, a former Raymond James advisor, for swindling about $3 million from clients through a Ponzi scheme. Foerster allegedly transferred funds from clients’ brokerage accounts into a phantom income fund called “S.G. Investments.” In reality, “S.G. Investments” was actually a bank account under Foerster’s control which he used to pay personal expenses. FINRA believes that the scam began in 2000 and lasted up until June 2014. Foerster provided his clients with fabricated account statements and even paid monthly dividend payments on the fictitious fund to two of the clients.
Early in June 2014, Raymond James terminated Foerster and reported the scheme to FINRA. Foerster admitted to misappropriating funds and accepted a permanent bar him from the industry.
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