Walter Bish Suspended by FINRA for Alleged Unsuitable Trading Strategy

Walter Bish (CRD #: 3214712), a broker registered with Smith, Brown & Groover, has been suspended by FINRA, according to his BrokerCheck record, accessed on December 12, 2024. Keep reading if you have questions about his alleged conduct as a broker.

FINRA Suspension

On November 6, 2024, Walter Bish consented to the entry of findings that he allegedly recommended a trading strategy to seven clients between July 2014 and February 2018 without fully understanding the features and risks associated with it or the exchange-traded note (ETN) that the strategy invested in.

According to a Letter of Acceptance, Waiver & Consent (AWC), this was allegedly an inverse and volatility-linked ETN, a complex type of investment designed to track an underlying volatility index and generate returns when volatility declines.

The AWC alleged that the trading strategy Walter Bish recommended was developed by another broker at his firm, and that Walter Bish failed to conduct his own independent due diligence on the strategy and the ETN it invested in. He allegedly did not fully understand how the strategy worked, including that the ETN could be accelerated or terminated, or the circumstances of these events.

The AWC alleged that Walter Bish did not have a reasonable basis for recommending this trading strategy to any client.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111 and 2010.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must consult the investor’s profile, which describes their tax status, investing experience, risk tolerance, and other information.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2010

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

Sanctions

Walter Bish consented to the following sanctions:

• 3-month suspension from associating with FINRA members
• $5,000 fine

His suspension began on December 2, 2024, and will end on March 1, 2025. You can access the full AWC here.

Investor Dispute

On May 23, 2019, an investor filed a dispute naming Walter Bish in allegations of negligence, negligent and intentional misrepresentation and omission, fraud, suitability, failure to supervise, violation of Georgia securities laws and statutes and the Investment Advisers Act of 1940.

The client alleged that this misconduct involved volatility-linked products and variable annuities and took place from July 2008 to the date of dispute filing. This dispute was settled for $425,000.

FINRA Rule 2020

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s expenses and fees, as well as its potential risks and returns.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision over their employees in order to detect and prevent violations of securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

What is Broker Negligence?

Many types of broker misconduct may qualify as negligence. Common examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

Investors who believe their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Background Information

Walter Bish has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 6

Walter Bish is a registered broker in 19 states.

Kurta Law Can Help

If you worked with Walter Bish 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.