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Articles Tagged with Lombard Securities Incorporated

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John William Cutshall (CRD #874352) is a registered broker and former registered investment advisor currently employed with Lombard Securities Incorporated (CRD #27954) of Woodsboro, MD. His previous employers include Morgan Stanley (CRD #149777), RBC Capital Markets, LLC (CRD #31194) and Ferris, Baker Watts, LLC (CRD #285), also of Frederick, MD. He has been in the industry since 1979.

Three Individuals Charged by the SEC for Defrauding Elderly Clients on elderfinancialfraudattorneys.comCutshall has four recent disclosures in his record. The most recent is a pending FINRA disciplinary complaint filed by their Department of Enforcement on 8/10/2018 (the full complaint is available here.) His actions are described in detail regarding the misappropriation of trusts that he was administering for three individuals. Between 2012 and 2014, Custshall abused his position for these trusts (for one elderly woman and a now-deceased married couple), converting and improperly using funds from the trusts.

The trust provided for the couple’s disabled daughter, who was in a residential facility for intellectually disabled individuals. When the daughter died in 2012, Cutshall used his position as a trustee to write 34 checks from the trust for a total of $400,000. These checks were deposited into his own bank account. Cutshall then presented an unwitnessed handwritten note that was allegedly written by the deceased husband, but not the wife. The note named Cutshall as a 50% beneficiary, defending his converting of funds from the trust. He took a total of $463,000, which was more than he was entitled to, assuming the note was genuine. Cutshall never disclosed this note until 2013, and failed to disclose to two firms that he was a client’s trustee.

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The SEC has filed criminal charges against former broker Steven Pagartanis (CRD #1958879). These charges involve defrauding his long-time customers into investing in his own company, a security that was not sold by his firm. He promised his customers that the funds would give them guarantee interest payments. Pagartanis was, in reality, using the money for personal expenses and making “interest payments” out of that account. He created fictitious account statements for his customers to show “ownership.” When he stopped making the payments and complaints were filed, it became clear that he was not operating ethically.

Frederick-Monroe-16-year-Financial-Advisor-Permanently-Barred-by-FINRA-300x200In addition to SEC charges, he has also been barred by FINRA from acting as a broker or other registered agent after his customers complained about these unapproved investments. Pagartanis’ last employer of record was Lombard Securities Incorporated (CRD #27954) in Seatauket, NY, where he worked from 09/07/2017 through 03/17/2018.

Pagartanis was a broker for 28 years. His previous employers include:

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