Former Financial Advisor Bradley Goodbred The Subject of An SEC Enforcement Action For Theft

Bradley Goodbred (CRD#: 3184210) is a previously registered Broker and a previously registered Investment Advisor.

Broker’s Background

He entered the securities industry in 1999 and previously worked for LPL Financial, LLC; and Banc One Securities Corporation.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2022, the United States Securities and Exchange Commission initiated a civil action against Bradley Goodbred. The allegation states, “Plaintiff U.S. Securities and Exchange Commission (“SEC”) alleges that the SEC brings this action against Defendant Bradley A. Goodbred (“Goodbred”) for stealing the money of an elderly investment advisory client (the “Client”) who currently suffers from dementia. From at least 2012 to 2020, Goodbred solicited the Client to transfer a total of $1,295,000 to one of Goodbred’s businesses to make purported investments in real estate investment trusts (“REITs”) on the Client’s behalf. On some occasions, the Client, with the advice and approval of Goodbred, sold securities in her account and transferred the proceeds to him to fund the purported investments in REITs. In reality, Goodbred did not use the Client’s money to make any investments on behalf of the Client. Instead, he used her money for personal expenses and business expenses unrelated to any purported investments. Goodbred’s former financial institution terminated its association with Goodbred on February 1, 2021 after conducting an investigation into Goodbred’s conduct relating to the Client. Goodbred misappropriated a total of $1,295,000 from the client during 2012 through 2020. However, from 2013 to 2014, Goodbred repaid the Client a total of $306,665. Additionally, in March 2022, after Goodbred’s misconduct had been discovered, Goodbred repaid the client an additional $147,476. In August 2022, Goodbred’s former financial institution settled an arbitration claim brought by a successor trustee, whose responsibilities included responsibility over the Client’s financial affairs. As a result of the settlement, the Client has recovered the remaining losses that she suffered due to Goodbred’s theft. As a result of the conduct described in this Complaint, Goodbred violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Sections 17(a)(1), (2), and (3) of the Securities Act, and Sections 206(1) and (2) of the Advisers Act.” The civil action is pending.

In addition, Bradley Goodbred has been the subject of three disclosures, including being sanctioned by FINRA:

  • January 2022 — “Customer alleges that representative caused her to execute a document appointing representative as her power of attorney, and that representative allegedly induced customer to invest in a fraudulent, unregistered security. Activity period 2009 to 2020.” The customer dispute was settled for $1.2M.
  • February 2021 — “Without admitting or denying the findings, Goodbred consented to the sanction and to the entry of findings that he refused to respond to an information request issued by FINRA in connection with its investigation of Goodbred’s termination from his former member firm. The findings stated that Goodbred’s former firm filed a Form U5, stating that he had been terminated because he failed to disclose and obtain firm approval to act as power of attorney for a customer.” Bradley Goodbred was permanently barred from all capacities, indefinitely, beginning February 16, 2022. For a copy of the FINRA sanction, click here.
  • January 2021 — “Utilized unapproved power of attorney to facilitate distribution of customer funds to a real estate company representative owned and operated.” Bradley Goodbred was discharged by LPL Financial, LLC.

For a copy of Bradley Goodbred’s FINRA BrokerCheck, click here

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Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]