According to reports, the Financial Industry Regulatory Authority (FINRA) has barred Claus Foerster from the industry in connection with an alleged Ponzi Scheme. Authorities have accused Foerster of stealing nearly $3 million from clients since 2000. Allegedly Claus told investors that their funds would be invested in a fund known as S.G. Investments but instead the funds were placed in a bank account controlled by Foerster.
The reports allege that Foerster provided clients with fictitious account statements and two clients were provided purported dividend payments each month. At least 13 known clients fell victim to Foerster’s alleged scheme.
According to Foerster’s FINRA Broker Report, he was employed by Morgan Keegan & Co. Inc. beginning in 2008 and came to Raymond James last February. Foerster’s employment at Raymond James appears to have been terminated by on on June 4.
The report also indicates that Raymond James is in the process of attempting to make restitution to the clients involved. Given the seriousness of these allegations, it is recommended that victims of Foerster’s scheme seek legal counsel to ensure that their legal rights are protected.
The White Law Group is investigating what liability Foresters employer may have for client’s losses. When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” If proven, the brokerage firm may be liable for negligent supervision of their broker representative and held responsible for investment losses in a FINRA dispute resolution claim.
If you were a client of Claus Forester and would like to discuss your litigation options to recover investment losses, please call the firm at (312) 238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.