Walter Theobald Allegedly Misrepresented Risky Investments

Walter Theobald (CRD #: 1235214), a broker registered with RBC Capital Markets, allegedly made misrepresentations about high-risk investments, according to his BrokerCheck record, accessed on June 2, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Pending Dispute

On March 6, 2023, several investors alleged that Walter Theobald failed to act in their best interest by misrepresenting certain high-risk investments. This misconduct allegedly began in May 2021. This dispute is currently pending.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. An investor’s profile includes information about their risk tolerance, tax status, and financial goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or otherwise fraudulent tactics to influence the purchase and sale of securities. Misrepresenting an investment’s potential risks, limitations, or other relevant information violates this rule.

Background Information

Walter Theobald 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

Walter Theobald is a registered broker in 13 states and a registered investment adviser in Texas.

He has also worked for the following firms:

• Morgan Stanley Smith Barney (CRD#:149777)
• Morgan Stanley & Company (CRD#:8209)
• Morgan Stanley DW (CRD#:7556)
• Wachovia Securities (CRD#:19616)
• First Southwest Company (CRD#:316)
• Masterson Moreland Sauer Whisman (CRD#:16815)
• Smith Barney Shearson (CRD#:7059)
• Lehman Brothers (CRD#:7506)
• Kemper Securities Group (CRD#:19616)
• Lovett Underwood Neuhaus & Webb (CRD#:22540)
• Underwood, Neuhaus & Company (CRD#:839)
• Swink & Company (CRD#:7111)
• Park, Ryan, Inc. (CRD#:7154)

Kurta Law Can Help

If you worked with Walter Theobald 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.