MFDA announces disciplinary proceeding in respect of Roger Gebhardt

Allegation #1: Commencing no later than September 17, 2018, the Respondent failed to disclose to the Member a conflict or potential conflict of interest that arose when the Respondent became aware that a client had named the Respondent’s spouse as the sole estate trustee and sole beneficiary of the client’s estate in the client’s will, thereby failing to ensure that the conflict or potential conflict of interest was immediately disclosed to the Member and addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2.

Allegation #2: In October 2018, the Respondent processed, or facilitated the processing of, redemptions in the account of a deceased client directly with mutual fund companies, and failed to inform the Member of the redemptions or submit trade documents to the Member in respect of the redemptions, thereby:

1. engaging in securities related business which was not carried on for the account of the Member or through its facilities, contrary to the Member’s policies and procedures and MFDA Rules 1.1.1, 2.1.1, 2.5.1 and 1.1.2; or
2. concealing or attempting to conceal from the Member that the Respondent’s spouse was the recipient of the proceeds of the redemptions as the client’s sole estate trustee and sole beneficiary, contrary to MFDA Rule 2.1.1.

Allegation #3: Commencing no later than November 9, 2018, the Respondent failed to disclose to the Member a conflict or potential conflict of interest that arose when the Respondent became aware that the Respondent was named by a client as the recipient of a $25,000 bequest in the client’s will, thereby failing to ensure that the conflict or potential conflict of interest was immediately disclosed to the Member and addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2.

Allegation #4: On November 16, 2018, the Respondent misled the Member during the Member’s investigation into his conduct when he falsely denied that he had ever been named as the estate trustee or beneficiary of an estate of a client, contrary to MFDA Rule 2.1.1.