SEC Brings Enforcement Action Against Financial Adviser Patrick Thayer

  • July 13, 2023
  • SEC

Patrick Thayer (CRD#: 5735955) is a previously registered Broker and previously registered Investment Adviser.

Broker’s Background

He entered the securities industry in 2010 and previously worked for LPL Financial, LLC; Parkland Securities, LLC; Sagepoint Financial, Inc.; and H.D. Vest Investment Services.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2023, the United States Securities & Exchange Commission filed a civil action against Patrick Thayer, which is pending. The allegation states, “On June 13, 2023, the U.S. District Court for the Southern District of Ohio Western Division issued this Complaint for Injunctive and Other Relief against Defendant Patrick N. Thayer (“Defendant” or “Thayer”). The U.S. Securities and Exchange Commission (“Plaintiff” or “Commission”) alleges as follows: From approximately November 2013 through August 2022, Thayer, acting individually and through Broadway Financial Solutions (“Broadway Financial”), Defendant’s tax preparation and investment advisory services business, misappropriated approximately $1.3 million in assets from a single client (“Client”) for his personal benefit. While perpetrating this fraud, Defendant was a registered representative of various broker dealers and managed the Client’s account and those firms. During some of the fraud, Defendant was also an associated person of an investment adviser and served as the Client’s investment adviser. Defendant perpetrated the fraud by establishing a bank account under the Client’s name in November 2013 without the Client’s knowledge or permission (“the Bank Account”). In setting up the Bank Account, Defendant forged the Client’s signature on the account opening documents and used his Broadway Financial office address instead of the Client’s home address. He also set up the account so that he could access and transfer funds from it. Thereafter, on nearly a monthly basis from approximately November 2013 through August 2022, Defendant (i) sold assets in the Client’s brokerage account, (ii) transferred the proceeds from those sales to the Bank Account, and (iii) withdrew the funds from that account, either by electronic transfer or drafting checks drawn on the account payable to himself and others. For the checks, Defendant forged the Client’s signatures. The Client was not aware of and did not consent to any of the transfers that Defendant made from her brokerage account to the Bank Account, or transfers that Defendant made from the Bank Account to himself or others. Through his conduct, Defendant has engaged in acts, practices, schemes, and courses of business that violated Sections 17(a)(1) and (2) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”).”

In addition, Patrick Thayer has been the subject of three more disclosures, including the following:

  • March 2023 — “Client alleges advisor misappropriated funds from her account in 2014 – 2020.” The customer dispute is pending, and damages of $1.3M are requested.
  • November 2022 — “Respondent Thayer failed to respond to FINRA requests for information.” FINRA barred Patrick Thayer from all capacities, indefinitely, beginning February 21, 2023.
  • September 2022 — “Client alleges advisor misappropriated funds from her account. 01/02/2019-9/28/2022.” The customer dispute is pending. Damages of $45,520 are requested.

 For a copy of Patrick Thayer’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.

In addition, to the extent a Financial Advisor converts client assets during the course and scope of his employment and/or registration with the brokerage firm, that brokerage firm may be held liable for any attendant losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

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]