Broker Bradley Drude Suspended and Fined due to Undisclosed Conflict of Interest

Drude’s failure to disclose details surrounding fraud of elder investor drives FINRA action

In response to allegations surrounding his relationship with an elderly investor, Louisiana-based broker Bradley Drude agreed to an Offer of Settlement to FINRA in which he was assessed a deferred fine of $25,000 and suspended from association with any FINRA member in any capacity for six months, according to the FINRA Disciplinary Action report.

It is alleged that Drude failed to disclose that an elderly client had named him as executor and beneficiary in her will and granted him general power of attorney. It is also alleged that he typed a new will for the client naming himself as such and drove the client to a notary’s office to have her sign it—all without the involvement or assistance of the client’s attorney. The estate was valued at approximately $3 million. When the client requested a change to the will, it is alleged that Drude prepared a codicil to the will, but did not drive the client to the notary to have it notarized, knowing it would be invalid without notarization.

Following the client’s death, the client’s secondary beneficiaries and close friends contested the will. According to the FINRA complaint, “the petition to annul the will alleged that the will was the product of Drude’s undue influence over EAM who was 91 at the time Drude prepared the new will and had just suffered the loss of her brother and her home.”

The FINRA findings also allege that Drude’s failure to disclose his fiduciary position to his employing firm, Ameriprise Financial Services, Inc., violated the firm’s policies, but also prevented the firm from addressing the conflicts of interest and potential exploitation of Drude’s relationship with the client. The findings also allege that on three different questionnaires sent to Drude by the firm, Drude failed to disclose his position with the client, thus causing the firm’s records to be false.

Drude was permitted to resign from Ameriprise Financial Services, Inc. while under review for these allegations.

Unfortunately, elder financial fraud issues such as this take place often within the securities industry. The SEC and FINRA have recognized elder financial fraud as a growing problem. Claims against financial advisors frequently include trust and estate issues, excessive trading or the sale of unsuitable alternative investments or insurance products.

While not all brokers or financial advisers prey upon the elderly, if you or someone you know has fallen victim to Bradley Drude or any financial adviser, you have the right to pursue your financial losses through securities arbitration.

Silver Law Group is an aggressive protector of elderly investors’ rights. Contact our experienced team of securities arbitrations attorneys to review your case at no cost. You will only pay legal fees if we are successful.