National investment fraud lawyers KlaymanToskes continues its investigation of barred broker Rhett Douglas Bedwell (CRD# 5664392) following allegations that he used forged documentation to invest a client’s assets in a Ponzi scheme without their knowledge or consent.
Bedwell’s former brokerage firm, LPL Financial, was fined $150,000 for failure to supervise him. Bedwell was permanently barred from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”) in March 2021 due to findings that he failed to comply with the regulator’s investigation of his alleged misconduct.
According to FINRA Brokercheck, Rhett Bedwell has also been involved in three additional investment-related disputes.
Investors that suffered losses with Rhett Bedwell at LPL Financial may have recovery options. Contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Rhett Douglas Bedwell entered into a Letter of Acceptance, Waive, and Consent (“AWC”), with FINRA’s Department of Enforcement on March 2nd, 2021. According to the AWC, LPL Financial allegedly filed to terminate Bedwell in 2019 and amended the termination form the following year.
The amended form revealed that Bedwell had been involved in a pending customer complaint which alleged that Bedwell moved a client’s Individual Retirement Account (IRA) to a different administrator. The customer also alleged that Bedwell placed their assets into a Ponzi scheme.
In 2020, FINRA sent Bedwell four letters between the months of September and December, requesting him to provide information and documents in response to the regulator’s investigation. Bedwell failed to fully respond to FINRA’s requests and declared he would not provide the outstanding information or documentation at any time.
Bedwell’s refusal to comply with FINRA’s investigation and requests for information led to his permanent bar from working as a stockbroker in all capacities.
According to FINRA Brokercheck, Rhett Bedwell has four customer complaints, three of which were settled in favor of the investors. He also has a regulatory disclosure and a tax lien disclosure. Rhett Bedwell’s customer complaint are listed below:
Filed 3/17/2021: Settled for $19,848.26 – Customer alleged Bedwell caused her to transfer funds to a business entity that he purported to be affiliated with, and used funds to invest in an unsecured promissory note, without the customer’s knowledge. The customer further alleged that thereafter, he returned the proceeds of the promissory note to the business entity and transferred the customer’s funds to another broker-dealer, and then to a bank account that was not the customer’s account.
Filed 10/14/2020: Settled for $355,772.08 – Customer alleged that Bedwell caused her to surrender two variable annuities, and transfer proceeds and other funds to a business entity that he purported to be affiliated with. The customer further alleged Bedwell used funds to invest in worthless unsecured promissory notes, without customer’s knowledge.
Filed 8/28/2020: Settled for $233,000 – Customer alleged that in 2019, Bedwell moved their IRA to a different administrator and used forged documentation to invest their money in a Ponzi scheme.
Filed 12/20/2012: Denied by the firm – Customer alleged the annuity contract purchased is not what she expected and claims she was told the amount she invested would not decrease. The customer also alleges she did not know the fees were so high, and further alleges she wanted a safe investment with no risk and the purchased annuity does not provide that.
On December 7, 2022, LPL Financial entered into a Letter of Acceptance, Waive, and Consent (“AWC”) with FINRA, whereby the firm consented to sanctions of a $150,000 fine in connection with findings that it “failed to investigate red flags related to a registered representative’s undisclosed outside business activities (OBAS).”
According to the AWC, the firm violated FINRA Rule 3110 (Supervision), which requires firms to establish and maintain a system to supervise brokerage activities and to reasonably investigate red flags that suggest misconduct may be occurring. LPL Financial also violated FINRA Rule 2010, which requires FINRA members to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
Although Bedwell was not specifically identified in the AWC, his actions were further detailed through FINRA’s March 2021 filing, which permanently barred the broker.
Investors that suffered losses with Rhett Douglas Bedwell and/or any other broker/advisor at LPL Financial may have recovery options. Contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com