Blaine Stahl Suspended by FINRA for Alleged Failure to Supervise

Blaine Stahl (CRD #: 1189213), a broker registered with American Global Wealth Management, has been suspended by FINRA, according to his BrokerCheck record, accessed on November 12, 2024. If you want to know more about his alleged conduct as a broker, keep reading.

Suspension by FINRA

On October 16, 2024, Blaine Stahlman consented to the entry of findings that he allegedly failed to reasonably supervise another broker’s recommendations and business communications between March 1, 2019, and February 1, 2021.

A Letter of Acceptance, Waiver & Consent (AWC) alleged that Blaine Stahlman failed to supervise the broker’s recommendations of GWG Holdings’ L Bonds to seven retail investors, which were not suitable or in the clients’ best interests in light of their investment profiles.

Blaine Stahlman was allegedly this broker’s direct supervisor and approved each L Bond sale, and allegedly continued to do so even after the broker voiced concerns about the viability of GWG Holdings’ business model.

The seven clients allegedly had a concentration in these speculative investments between 11%-32%, and most allegedly had limited or no experience with alternative investments.

Further, Brent Stahlman was allegedly responsible for establishing and maintaining Professional Broker-Dealer Financial Planning’s written supervisory procedures (WSPs) as its Compliance Officer.

He allegedly failed to establish a system for retaining business email communications and, despite knowing that the broker in question was using a personal email address, failed to take steps to ensure these emails would be retained as part of the firm’s books and records.

The AWC concluded that this alleged misconduct constitutes violations of FINRA Rules 3110, 4511, and 2010.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

FINRA Rule 4511

FINRA Rule 4511 requires that firms maintain accurate books and records.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Brent Stahlman consented to the following sanctions:

• 6-month suspension from associating with FINRA members
• $15,000 fine
• Undertaking to complete 24 hours of continuing education on supervisory and recordkeeping responsibilities within 90 days of the Notice of Acceptance of the AWC

His suspension began on November 4, 2024, and will end on May 3, 2025. You can access the full AWC here.

Background Information

Blaine Stahl has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• Series 99TO – Operations Professional Examination
• Series 52TO – Municipal Securities Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 14 – Compliance Officer Examination
• Series 27 – Financial and Operations Principal Examination
• Series 24 – General Securities Principal Examination

Blaine Stahl is a registered broker in Colorado.

He has also worked for the following firms:

• Professional Broker-Dealer Financial Planning (CRD#:23651)
• Legg Mason Wood Walker (CRD#:6555)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Blaine Stahl and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.