Investigation into Claus C. Foerster Formerly of Raymond James

 Sonn Law Group is investigating claims related to former broker Claus Christoph Foerster (CRD#1912949). Foerster was most recently associated with Raymond James & Associates, Inc. (“Raymond James”) in Greenville, South Carolina having worked there from February 2013 through June 2014. Prior to joining Raymond James, Foerster was associated with Morgan Keegan & Company, Inc. (“Morgan Keegan”) from February 2008 through February 2013, and Citigroup Global Markets Inc. from July 1997 through February 2008. Foerster was permanently barred by FINRA from participation in the industry in any capacity as of June 18, 2014.

Regulatory and Criminal Actions

On May 10, 2016, Foerster pled guilty to five counts of federal wire fraud after being accused of stealing about $2.8 million while employed with Morgan Keegan. Foerster created a fictitious company under the name SG Investment Management with the sole purpose of defrauding his clients.  Beginning in about 2000, Foerster’s clients were guided to cash their brokerage accounts out and deposit the money into a bank account and then write checks payable to SG Investment Management. To conceal his scheme, Foerster would then provide clients with falsified account statements to make it look like they were earning money or return funds to some investors. None of the funds were actually invested; rather, Foerster would draw on the funds for his own personal use.

According to Foerster’s CRD, there is a pending investigation into Foerster’s potential violations of the South Carolina Uniform Securities Act.

Closed Customer Complaints

In addition to the aforementioned regulatory and criminal actions, Foerster had 3 prior complaints that have been resolved, including:

  1. A complaint with alleged damages of $82,500 based on allegations of misappropriation and forgery received by FINRA on November 14, 2014 and settled on March 18, 2016 for $75,000;
  2. A complaint with alleged damages of $330,908.13 based on allegations of embezzlement received by FINRA on November 14, 2014 which evolved into civil litigation on August 8, 2014 and settled on December 18, 2014 for $250,000 ; and
  3. A complaint with alleged damages of $200,000 based on allegations of excessive trading, unauthorized trading, breach of fiduciary duty, common law fraud, misrepresentation, negligence, breach of industry rules and ciolations of the South Carolina Uniform Securities Act received by FINRA on February 18, 2014 and setteled on February 3, 2015 for $165,000.

FINRA member firms are responsible for the supervision of a broker’s activities while the broker is registered with their firm. Therefore, Morgan Keegan and Raymond James may be liable for investment or other losses suffered by Foerster’s customers.

If you were a client of Raymond James & Associates, Inc., Morgan Keegan & Company, Inc. or Claus Christoph Foerster and have experienced investment losses or missing funds in your investment accounts, please call Sonn Law Group at 844-689-5754 or click here to access our contact form. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.