Barred Stockbroker Faces Criminal and SEC Charges for Senior Investor Fraud
Frederick Stow (CRD#: 864436), a former Raymond James broker based out of Tennessee, is now the subject of criminal charges accusing him of securities fraud, identity theft, and wire fraud for allegedly stealing $943,500 from the IRAs and other accounts of two senior investors between 2015 and 2019.
The broker-dealer fired him last year and the Financial Industry Regulatory Authority (FINRA) barred him in January. The US Securities and Exchange Commission (SEC) recently filed a parallel civil lawsuit against Stow.
Our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are investigating claims by former customers of Frederick Stow who may have suffered significant losses while he was their registered representative. Contact us today for your free, no-obligation case consultation by calling (800)-259-9010.
One of Stow’s Alleged Victims Was A 98-Year-Old WWII Veteran
According to the former financial advisor’s BrokerCheck record, the brokerage firm Raymond James, where he’d worked since 2013, fired him in 2019 for misappropriating customer funds. FINRA suspended him following the allegations and then barred him after he did not respond to the self-regulatory organization’s (SRO’s) request for information.
On June 11, 2020, the SEC filed civil fraud charges against Frederick Stow accusing him of defrauding the two senior investors, including a WWII veteran who had been his customer for over 30 years. The regulator contends that the ex-Raymond James broker started to make unauthorized sales transactions in the vet’s IRA and then allegedly moved the proceeds to his own bank account during 74 transactions while using falsified wire transfer forms.
A month after the senior investor’s death at 98 in early 2019, Stow allegedly stole funds from another senior investor by wiring funds from that customer’s account into his personal account without obtaining authorization.
With 40 years in the industry, Stow also previously was a registered stockbroker at seven other firms, including:
- Wells Fargo Advisors
- SunTrust Investment Services
- SunTrust Capital Markets
- Robert W. Baird
- Northwestern Mutual Investment Service
- SunTrust Equitable Securities
- Merrill Lynch
- Pierce, Fenner & Smith.
Stow is now the subject of one pending customer dispute for allegedly misappropriating client funds from 2013 to 2019. The claimant is seeking $911,500.
Raymond James and Its Failure To Properly Supervise
While Raymond James eventually fired Stow, the firm didn’t terminate his employment until after customers were harmed. The broker-dealer appears to have failed in its duty to properly supervise its former broker and detect, prevent, and stop the investor fraud from happening.
When inadequate supervision allows for broker fraud to happen, customers who were harmed may have grounds for a broker-dealer negligence claim for damages and losses.
Senior Investor Fraud Lawyers
Older investors remain one of the most vulnerable groups when it comes to becoming victims of financial fraud. Our senior investor fraud attorneys represent elderly investors and their families throughout the US. Over the years, we have recovered many millions of dollars on our clients’ behalf.
If Frederick Stow was your financial advisor or you suffered investment losses as a result of senior investor fraud with another broker, contact SSEK Law Firm today. We can help you recover your losses.