FINRA

Wodrich was named a respondent in a FINRA complaint alleging that he failed to produce documents and information requested by FINRA in connection with its investigation into whether he had made unsuitable recommendations and provided misleading information to a senior customer, whether he engaged in discretion without written authorization in that customer's account, and whether he had communicated with customers using a personal email address that was not monitored or retained by his member firm. The complaint alleges that Wodrich's failure to provide the requested information and documents impeded FINRA's investigation. The complaint also alleges that Wodrich failed to appear for on-the-record testimony requested by FINRA. Wodrich's testimony was material to FINRA's investigation. Wodrich's failure to provide on-the-record testimony impeded FINRA's investigation.

Decision

Bar (Permanent)

All capacities

Indefinite

1/6/2025

Default decision rendered December 12, 2024 wherein the sanction was based on findings that Wodrich failed to respond fully to FINRA's requests for information and documents and refused entirely to appear for on-the-record testimony in connection with an investigation into his conduct while he was associated with a member firm. The findings stated that among other things, FINRA requested that Wodrich provide the telephone numbers he used to communicate with his customers, copies of telephone records, information about whether he exercised discretion in customer accounts, and the names of any customers he communicated with using a personal email address. Wodrich provided FINRA with some information and documents before he stopped cooperating with its investigation. Wodrich did not provide FINRA with any information or documents in response to the First Information Request. On the day of the deadline for responding to the Second Information Request, Wodrich sent FINRA a letter, along with certain information and documents, that he had previously submitted to FINRA. In a comment Wodrich provided to FINRA through FINRA's Request Manager system, he stated he had produced everything he has access to. The information and documents arguably were partially responsive to three of the 13 requests. In addition, Wodrich wrote to FINRA via Request Manager that he "do[es] not consent" to FINRA's requests for information and documents. To date, Wodrich has not provided a complete response to the any of the Information Requests. Furthermore, Wodrich refused outright to appear for an on-the-record testimony, offering no explanation other than that he did "not consent" to FINRA's request for his testimony. The decision is final on January 6, 2025.

HORNOR, TOWNSEND & KENT, LLC

Discharged

The registered representative's contract with the member firm was terminated for violation of the member firm's procedures with respect to (a) client communications, including using an unapproved email address to communicate with clients; (b) use of discretion in client accounts; and (c) failure to timely forward a client complaint.

Clients allege that the financial professional sold them an investment that was not suitable and they have suffered losses in their account.

$12,000.00

$17,000.00

THE MEMBER IS STATING THAT HE WAS NOT AWARE OF THE MARKET VOLATILITY OF THE SPIVA AND THE FACT THAT THE ANNUAL PAYMENTS COULD DECREASE THUS IMPACTING THE LONGEVITY OF THE HORIZON CERTIFICATE. HE HAS INDICATED HE DOES NOT WANT TO PAY THE ADDITIONAL PREMIUM NEEDED FOR THE HORIZON CERTIFICATE OUT OF POCKET (IE THE DIFFERENCE BETWEEN THE SPIVA PAYMENT AND $2400 HORIZON PREMIUM). AS A RESULT THEY WANT THE SPIVA REVERSED AND A LIFE INCOME SETTLEMENT OPTION ESTABLISHED INSTEAD.

$14,419.46

$14,419.45

MEMBER ALLEGED REGISTERD REPRESENTATIVE DID NOT DISCLOSE SPIVA WAS ASSOCIATED WITH THE STOCK MARKET, STATED PAYOUT WOULD COVER HORIZON PREMIUM, AND THAT SHE WOULD ALWAYS HAVE AMOUNT INVESTED.

$6,794.07

$12,793.00