INVESTORS: Former SW Financial broker Richard Foerster Reynolds is facing a customer dispute alleging churning, excessive commissions, unauthorized trading, unsuitability, negligence, breach of contract, and fraud.
Richard Foerster Reynolds (CRD: 2162706) was registered as a broker with SW Financial from 2021 until 2022. Reynolds was previously registered as a broker with Worden Capital Management from 2016 until 2021.
Reynolds has eighteen disclosures on his BrokerCheck report. One customer dispute filed against Reynolds was closed with no action taken and one was denied. One disclosure relates to a personal criminal charge. Four disclosures occurred prior to 2010.
March 2022 Customer Dispute
Allegations: Churning, excessive commissions, unauthorized trading, unsuitability, negligence, breach of contract, fraud
Damage Amount Requested: $376,988.61
Broker Comment: Registered Rep denies all allegations in the statement of claim.
October 2021 Customer Dispute
Allegations: Unsuitable Investments, Unauthorized Trading, Churning, Fraud, Excessive Commissions, Excessive Trading, Breach of Fiduciary duty
Damage Amount Requested: $1,606,034.39
Settlement Amount: $100,000.00
April 2019 Customer Dispute
Allegations: Customer alleges that a commission of $8,000 in August 2018 was not authorized by him.
Damage Amount Requested: $8,000.00
Settlement Amount: $4,000.00
December 2018 Customer Dispute
Allegations: Negligence and negligent supervision. Alleged activity took place between April 2017 and December 2018.
Damage Amount Requested: $65,000.00
Settlement Amount: $14,500.00
November 2018 Customer Dispute
Allegations: Statutory and common law fraud, misrepresentation, negligence, breach of contract and breach of fiduciary duty. Dates of alleged activity May 2016 through January 2018.
Damage Amount Requested: $56,000.00
Settlement Amount: $14,999.00
Broker Comment: This complaint was generated by a non-Attorney, third-party arbitration solicitation company. The State of Pennsylvania statutes were enforced and the non-Attorney was removed from the case for unlawful practice of law. The case was settled for financial prudence, as an arbitration hearing and process would have cost sufficiently more.
May 2018 Customer Dispute
Allegations: Churning, improper use of margin, unsuitability, and high commissions.
Damage Amount Requested: $503,828.39
Settlement Amount: $150,000.00
Broker Comment: Clients children sent a letter claiming to represent client in April 2018. The account was individual with a TOD to client’s wife. The letter did not contain a POA or other executed document showing that another party could act on the client’s behalf. As such, the Firm attempted to contact client directly to address the concerns raised, but was stonewalled by the children until the Firm’s attorney advised them that we would not speak with them without the client. On or about May 7, 2018, CEO and attorney spoke with client and children about the concerns. Firm determined to settle with client to avoid litigation and travel costs associated.
March 2016 Regulatory Judgment
Initiated By: Illinois
Allegations: In 2009, Reynolds was the subject of an Order issued by the New York Stock Exchange, a self-regulatory organization, censuring Reynolds and barring Reynolds from membership in the self-regulatory organization for five months for violating various New York Stock Exchange Rules. In October 2013, Reynolds was summarily denied registration as a salesperson in the State of Michigan because he engaged in dishonest or unethical practices in the securities and investment business in violation of the Uniform Michigan Securities Act
Resolution: Stipulation and Consent
Sanctions: The Respondent shall cause to have his registration as a salesperson in the State of Illinois withdrawn within three (3)days from the entry of this Consent Order and will not re-apply for registration for a period of two(2)years from the entry of this Consent Order The Respondent is levied costs of investigation in this matter in the amount of One Hundred Fifty dollars ($150.00) The Summary Order of Denial in this matter dated March 30, 2016, is hereby dismissed without further proceedings.
October 2013 Regulatory Judgment
Initiated By: State of Michigan
Allegations: Richard F. Reynolds is summarily denied under Section 412(6) of the act, because he has engaged in dishonest or unethical practices in the securities and investment business within the previous 10 years, and he was the subject of an order issued by the NYSE, a self-regulatory organization for five months, which supports the summary denial of his registration application under the above-cited provisions of the Michigan Uniform Securities Act (2002), 2008 PA 551, MCL 451.2101 et seq.
Broker Comment: Mr. Reynolds attempted to register in the State of Michigan. After 3 months in pending, with no notice from the state, his registration was denied. Mr. Reynolds is fighting this finding in the Michigan courts.
June 2011 Customer Dispute
Damage Amount Requested: $235,590.00
Settlement Amount: $164,000.00
July 2010 Customer Dispute
Allegations: Unauthorized trading, suitability, churning, and misrepresentations.
Damage Amount Requested: $290,000.00
Settlement Amount: $67,500.00
Broker Comment: I did nothing wrong and will vigorously defend myself.
April 2010 Employment Separation After Allegations
Firm Name: American Capital Partners
Termination Type: Discharged
Allegations: Insubordination and violation of firm policy.
Broker Comment: Mr. Reynolds is totally unaware of these accusations as they are quite vague.
The Sonn Law Group is currently investigating allegations surrounding Richard Foerster Reynolds. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.