A federal court in Colorado has entered a final judgment against former Stifel Nicolaus broker and investment adviser Steven D. Rodemer for fraud in connection with his misappropriation of $451,889 from an elderly client.
The judgment orders Rodemer, of Pueblo, Colorado, to pay a civil penalty of $385,536.
Stifel discharged Rodemer in January for taking money from a client without authorization. He was barred by the Financial Industry Regulatory Authority Inc. in March for refusing to take part in an investigation into his conduct.
The SEC’s complaint, filed earlier this month, alleged that Rodemer served as investment adviser to an elderly, widowed client and handled all of her finances, including advising her on her overall investment strategy and placing orders to execute this strategy. As alleged, Rodemer used his power of attorney over the client’s assets to write checks to himself, to his bank, and to cover various expenses associated with his vacation home.
In addition, Rodemer allegedly used the client’s brokerage account-issued debit/credit card to cover personal expenses and make ATM withdrawals, and later used the client’s bank account to pay his personal credit card bills online. According to the complaint, none of these transactions were authorized by the client.
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