Timothy Leroy Steadman – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Timothy Leroy Steadman.
BrokerComplaints.com is currently investigating allegations related to Timothy Leroy Steadman. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Timothy Steadman
Timothy Leroy Steadman is an Investment Adviser. Timothy Leroy Steadman’s Central Registration Depository (CRD) number is 2815806 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2815806.
Click here to download a Detailed Audit Report for Timothy Leroy Steadman.
Timothy Leroy Steadman has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Timothy Leroy Steadman’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 4/15/2005
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 8210-01050004
- DocketNumberAAO: 8210-01050004
- Initiated By: NASD
- Allegations: RESPONDENT FAILED TO RESPOND TO REQUESTS FOR DOCUMENTS AND/OR INFORMATION BY NASD UNDER NASD RULE 8210 AND TO TAKE CORRECTIVE ACTION WITHIN 20 DAYS AFTER SERVICE OF THE PRE-SUSPENSION NOTICE ON APRIL 15, 2005.
- Resolution: Other
- Sanction Details :: Sanctions: Bar
- Sanction Details: PURSUANT TO NASD PROCEDURAL RULE 9552(H) AND IN ACCORDANCE WITH THE NOTICE OF INTENT TO SUSPEND AND NOTICE OF SUSPENSION DATED APRIL 15, 2005, AND MAY 12, 2005, RESPECTIVELY, ON OCTOBER 21, 2005, RESPONDENT IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY.
DISCLOSURE 2 –
- Event Date: 4/2/2004
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: STATE OF CALIFORNIA, DEPARTMENT OF INSURANCE
- Allegations: CALIFORNIA STATE DEPARTMENT OF INSURANCE ALLEGED THAT REPRESENTATIVE’S ACTIONS CONSTITUTED GROUNDS FOR THE INSURANCE COMMISSIONER TO SUSPEND OR REVOKE LICENSES AND LICENSING RIGHTS PURSUANT TO SECTIONS 785, 1668 AND 1738 OF THE CALIFORNIA INSURANCE CODE.
- Resolution: Order
- Sanction Details :: Sanctions: Revocation/Expulsion/Denial
- Sanction Details: CALIFORNIA INSURANCE LICENSE REVOKED.
- Broker Comment: ADMINISTRATIVE HEARING HELD 07/14/2004. PROPOSED DECISION SUBMITTED BY ADMINISTRATIVE LAW JUDGE ON 08/08/04. CALIFORNIA INSURANCE COMMISSIONER THEN FILED A DECISION AND ORDER ADOPTING AND OFFICIALLY FILING PROPOSED DECISION ON 08/20/04. REPRESENTATIVE WAS FOUND TO BE SUBJECT TO DISCIPLINE PURSUANT TO INSURANCE CODE SECTION 1738 IN CONJUNCTION WITH INSURANCE CODE SECTIONS 785, SUBDIVISION (A) AND 1668, SUBDIVISIONS (B), (D), (E), (I), (J), (K) AND (L). INSURANCE CODE SECTION 1668, SUBDIVISIONS (B), (D), (E), (I), (J), (K), AND (L), READ: THE COMMISSIONER MAY DENY AN APPLICATION FOR ANY LICENSE ISSUED PURSUANT TO THIS CHAPTER IF: (B) THE GRANTING OF THE LICENSE WILL BE AGAINST PUBLIC INTEREST; (D) THE APPLICANT IS NOT OF GOOD BUSINESS REPUTATION; (E) THE APPLICANT IS LACKING IN INTEGRITY; (I) THE APPLICANT HAS PREVIOUSLY ENGAGED IN A FRAUDULENT PRACTICE OR ACT OR HAS CONDUCTED ANY BUSINESS IN A DISHONEST MANNER; (J) THE APPLICANT HAS SHOWN INCOMPETENCY OR UNTRUSTWORTHINESS IN THE CONDUCT OF ANY BUSINESS, OR HAS BY COMMISSION OF A WRONGFUL ACT OR PRACTICE IN THE COURSE OF ANY BUSINESS EXPOSED THE PUBLIC OR THOSE DEALING WITH HIM TO THE DANGER OF LOSS; (K) THE APPLICANT HAS KNOWINGLY MISREPRESENTED THE TERMS OR EFFECT OF AN INSURANCE POLICY OR CONTRACT; (L) THE APPLICANT HAS FAILED TO PERFORM A DUTY EXPRESSLY ENJOINED UPON HIM BY A PROVISION OF THIS CODE OR HAS COMMITTED AN ACT EXPRESSLY FORBIDDEN BY SUCH A PROVISION. REPRESENTATIVE’S STATEMENT: CURRENTLY AWAITING RECONSIDERATION DECISION BY CALIFORNIA DEPARTMENT OF INSURANCE AND PROCESS OF APPEAL WILL BE STARTED.
DISCLOSURE 3 –
- Event Date: 10/3/2002
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: VIOLATION OF SECTION 487(A) OF THE CALIFORNIA PENAL CODE (GRAND THEFT); 1. ONE COUNT; 2. MISDEMEANOR. 3. ORIGINAL PLEA OF NOLO CONTENDERE WAS SUBSEQUENTLY WITHDRAWN.
- Charge Type: MISDEMEANOR
- Disposition: A. ORIGINALLY ENTERED PLEA OF NOLO CONTENDERE. PLEA WAS SUBSEQUENTLY WITHDRAWN AND CASE WAS DISMISSED; B. 11/21/2002; C. RESTITUTION; F. RESTITUTION AMOUNT: $14,000.00.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- U.S. BANCORP INVESTMENTS, INC. (CRD#: 17868) :: 8/12/2002 – 11/24/2004 :: SAINT PAUL, MN
- IFMG SECURITIES, INC. (CRD#: 14416) :: 3/15/2001 – 7/16/2002 :: PURCHASE, NY
- FISERV INVESTOR SERVICES, INC. (CRD#: 34637) :: 10/21/1999 – 7/14/2000 :: HOUSTON, TX
- BISYS BROKERAGE SERVICES, INC. (CRD#: 23302) :: 6/23/1999 – 10/14/1999 :: ST. CLOUD, MN
- WELLS FARGO SECURITIES INC. (CRD#: 17438) :: 11/22/1996 – 11/25/1997 :: SAN FRANCISCO, CA
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Timothy Leroy Steadman, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Timothy Steadman
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Timothy Leroy Steadman – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2815806) for the broker – Timothy Leroy Steadman
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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