Joseph Pratt Barred by FINRA
Joseph Pratt (CRD #: 719416), a broker registered with Stifel, Nicolaus & Company, has been suspended and barred by FINRA, according to his BrokerCheck record, accessed on October 23, 2022. Read on to learn more about his conduct as a broker.
Suspension by FINRA
On July 14, 2022, Joseph Pratt received a Letter of Suspension alleging that he failed to comply with an arbitration award or settlement agreement or failed to satisfactorily respond to a FINRA request for information regarding the status of his compliance.
His suspension began on July 14, 2022, and will continue until the required payment is made or discharged.
Arbitration Agreement
On May 13, 2022, Joseph Pratt entered into a settlement agreement with Stifel, Nicolaus & Company. The firm alleged that Joseph Pratt breached a promissory note. The settlement agreement held Joseph Pratt liable for the following:
- $687,571.74 in outstanding principal, to be paid at a rate of $226.05 per day starting on April 28, 2022
- $192,539.30 in accrued interest
- $1,000 sanction imposed by the Arbitrator for being held in contempt
- Additional attorneys’ fees and other costs
You can read the full arbitration agreement here.
Investor Dispute
On June 12, 2020, an investor alleged that Joseph Pratt committed negligence and violated the Florida Securities and Investor Protection Act and FINRA Rules 2111, 2020, and 2010. The client sought $232,000 and received a settlement of $100,000.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. An investor’s profile describes their age, risk tolerance, and other characteristics.
Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.
FINRA Rules 2020 and 2010
FINRA Rule 2020 prohibits the use of deception, manipulation, and other fraudulent means of influencing the purchase and sale of securities. The misrepresentation or omission of information violates this rule.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Bar by FINRA
On September 24, 2019, Joseph Pratt consented to the entry of findings that he allegedly obtained confidential information from insiders at a public biopharmaceutical company and misused this information by communicating it to several of his clients. He also consented to the entry of findings that he allegedly engaged in undisclosed private securities transactions involving another company.
Alleged Use of Confidential Information
A Letter of Acceptance, Waiver & Consent (AWC) describes Company A as a clinical-stage biopharmaceutical company developing a class of drugs for treating autoimmune and inflammatory diseases. Joseph Pratt allegedly knew a director, a member of the company’s Scientific Advisory Board, and a doctor involved in FDA clinical trials, among other insiders.
The AWC alleged that in November 2011, Company A sent Wells Fargo a letter stating that Joseph Pratt had been attempting to obtain confidential information from company insiders. In response, Wells Fargo allegedly prohibited Joseph Pratt from speaking with employees of Company A.
However, the AWC alleged that Joseph Pratt continued to seek information from insiders in 2013 and 2014, who allegedly provided him with documents and emails containing confidential information related to the company’s ongoing FDA clinical trials (including patient data), newly discovered data patented or intended for patent by the company, and a confidential timeline of upcoming FDA filings.
The AWC alleged that Joseph Pratt then disseminated this confidential information to several of his Wells Fargo clients. The AWC concluded that these allegations constituted violations of FINRA Rule 2010.
Insider trading is a serious concern in the securities industry. Brokers are prohibited from using “insider” information to inform their securities transactions.
Sanctions
Starting September 24, 2019, Joseph Pratt was permanently barred by FINRA.
You can read the full AWC here.
Termination from Stifel, Nicolaus & Company
On September 24, 2019, Joseph Pratt was fired from Stifel, Nicolaus & Company following his signing of the AWC which barred him.
Background Information
Joseph Pratt has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
He previously worked for the following firms:
- Stifel, Nicolaus & Company (CRD#:793)
- Wells Fargo Advisors (CRD#:19616)
- A. G. Edwards & Sons (CRD#:4)
- Fahnestock & Company (CRD#:249)
- W.H. Newbold’s Son & Company (CRD#:7575)
Kurta Law Can Help
If you worked with Joseph Pratt 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 and 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.
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