According to reports former broker David R. Wulf was convicted of 18 counts in one of the largest fraud cases ever tried in the Eastern District Of Missouri. The conviction included bank fraud, wire fraud and conspiracy (to name a few).
According to the US Attorneys Office, Wulf was the adviser to a pre-need funereal trust established through National Prearranged Services Inc (NPS). As the trust adviser, Wulf was responsible for managing the trusts assets and safeguarding more than $150 million paid by customers until such time that they needed their funds. However, prosecutors said that Wulf used customers’ funds to pay unrelated debts of companies affiliated with NPS and enrich NPS’s officers and others.
According to reports, the scam began as early as 1992 and continued through 2008, when the company went under following scrutiny from regulators. The scheme reportedly affected as many as 150,000 customers in more than a dozen states.
According to his FINRA BrokerCheck Report, Wulf was a licensed broker and financial adviser with FINRA registered firms during the relevant time. He worked with Birchtree Financial Services from June 1988 through September 1999 and Moloney Securities Co. from Sept. 1999 through Aug. 2013.
The White Law Group is investigating the liability that these firms may have for the losses suffered by investors in this scheme.
Brokerage firms have a supervisory responsibility to monitor the activity and conduct of their brokers, including business conducted outside the firm. When a broker, like Wolf, misappropriates customer funds the brokerage firm may be liable for negligent supervision according to FINRA regulations and may be responsible for investment losses.
If you invested with David R. Wulf and would like to speak with a securities attorney about your potential to recover investment losses, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.