According to a FINRA disciplinary action announcement, Richard Martin Ohlhaber (CRD #2154794, Registered Principal, Keller, Texas) recently submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity.
Without admitting or denying the allegations, Ohlhaber consented to the described sanction and to the entry of findings that he participated in the sale of life settlement contracts offered by a company to at least 18 customers without providing written notice of his involvement in the sales of the life settlement contracts to either of his FINRA member firms, and never obtained either firm’s permission to engage in such outside business activity. The findings stated that Ohlhaber received commission checks from the company totaling over $300,000. These checks were addressed to an entity whose sole members were Ohlhaber and his wife. Ohlhaber endorsed these checks and deposited them in the entity’s bank account. Ohlhaber had access to this bank account and withdrew or otherwise used the money contained in this bank account. The company was not an approved product at either of Ohlhaber’s firms. Ohlhaber completed questionnaires at both firms in which he represented that he was not engaged in any outside business activity, and he misrepresented to one of the firms that the entity was a “shell” that was not engaged in any business.
The findings also stated Ohlhaber provided false sworn testimony which was material to FINRA’s investigation and as a result, impeded the investigation. The findings also included that Ohlhaber loaned money to customers who were not Ohlhaber’s family members. Ohlhaber never informed his firm about these loans and the firm never pre-approved the loans in writing. The firm’s WSPs only permitted loans between registered representatives and customers who are the registered representative’s immediate family members.
Full the full findings, see FINRA Case #2012032077901.
According to his FINRA Broker Report, Ohlhaber was registered with FSC Securities from August 2012 through November 2012, with Southwest Securities from May 2008 through April 2012, and with Century Securities Associates from April 2007 through May 2008.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. 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 Franklin, Tennessee.
For a free consultation with a securities attorney, call The White Law Group at 312/238-9650. For more information on the firm, visit https://www.whitesecuritieslaw.com.