The Financial Industry Regulatory Authority, Wall Street’s self-regulator, has barred former Raymond James Financial broker Claus Foerster following allegations that he stole around $3 million from 13 clients through a long-running Ponzi scheme he had been operating since 2000, The Wall Street Journal reports.
According to FINRA, Foerster solicited investments for S.G. Investments, which he claimed was an investment fund. In fact, it was a bank account that Foerster controlled. He directed the 13 clients to transfer funds from their brokerage accounts to their personal bank accounts, and then to write checks payable to S.G. Investments, Investment News reports.
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