Joseph Hershey Pratt, Barred by FINRA in 2019, Named in Customer Dispute Seeking $232K in Damages

Pratt is accused of negligence, breach of fiduciary duty, and other law violations.

The Sonn Law Group is investigating allegations that Joseph Hershey Pratt committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Joseph Hershey Pratt (CRD#: 719416) was registered as a broker with Stifel, Nicolaus & Company from 2014 until 2019. Previously, Pratt was registered as a broker with Wells Fargo from 2008 until 2014.

Pratt has six disclosures on his BrokerCheck report.

June 2020 Customer Dispute

• Status: Pending
• Allegations: Claimant alleges violation of Florida Securities and Investor Protection Act, breach of fiduciary duty, negligence, and violation of FINRA Rules 2010, 2020, 2111.
• Damage Amount Requested: $232,000.00

September 2019 Regulatory Judgment

• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Pratt consented to the sanction and to the entry of findings that he obtained confidential information that he received from insiders at a public biopharmaceutical company, and misused the confidential information by communicating it to several of his member firm’s customers. The findings stated that Pratt knew the company’s insiders, including a director, a member of the company’s scientific advisory board, and a doctor involved in the United States Food and Drug Administration (FDA) clinical trials. On numerous occasions, Pratt failed to disclose these relationships to his firm as required. The company sent the firm a letter stating that Pratt had been attempting to obtain confidential information from several company insiders. In response, the firm prohibited Pratt from speaking with the company’s employees. Despite this prohibition, Pratt continued to seek information from the company. In response to Pratt’s inquiries, the company’s insiders sent Pratt documents and emails containing confidential information concerning its ongoing FDA clinical trials, including patient data from the trial, newly discovered data that the company felt warranted a patent, and a confidential timeline of upcoming FDA filings. The findings also stated that although Pratt received approval to make a one-time personal investment in a speculative company, he did not provide his firm with prior written notice or obtain prior approval for his subsequent personal investments totaling $119,000 in shares of the company away from the firm. Additionally, Pratt failed to provide prior written notice or obtain prior approval for his solicitation of investors in the private securities transactions in the company. Pratt solicited the individuals, of whom included his firm’s customers, to invest approximately $436,000 in shares of the company.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 9/24/2019
• Broker Comment: I believed that any information disseminated by the public biopharmaceutical company to myself was non-material information because the company never produced clinical trial results that could lead to FDA approval of its drug. I disclosed my private securities transaction in a company at the time I joined Wells Fargo. On an annual basis I attested in writing to Wells Fargo that I maintained this ongoing investment away from the firm. I never obtained a commission from soliciting investment from the private securities transaction in the company. 

September 2019 Employment Separation After Allegations

• Firm Name: Stifel, Nicolaus & Company, Incorporated
• Termination Type: Discharged
• Allegations: Discharged after signing a letter of Acceptance, Waiver, and Consent which included a bar from association with any FINRA member in any capacity.

November 2017 Customer Dispute

• Status: Settled
• Allegations: Client alleges FA placed accounts in high risk stocks even though she asked that they not be invested in anything that could lose money. (12/1/2009-12/31/2015)
• Damage Amount Requested: $62,021.01
• Settlement Amount: $20,000.00

November 2014 Employment Separation After Allegations

• Firm Name: Wells Fargo Advisors, LLC
• Termination Type: Voluntary Resignation
• Allegations: Mr. Pratt voluntarily resigned from Wells Fargo Advisors concurrent with the firm’s review of Mr. Pratt’s relationship with two outside companies, and certain clients investing in a private investment not associated with Wells Fargo. The firm’s review of this matter was not prompted by a client complaint.
• Broker Comment: My completely voluntary resignation from Wells Fargo Advisors (“WFA”) to join Stifel Nicholas was unrelated to any internal review. I was not informed of any such review when it was initiated and was told about it only one business day before I resigned, after I had been working for a month and a half making plans to switch firms. The day before I left my manager tried to dissuade me from leaving by telling me there was such a review. A number of years ago I invested in several promising private placements, as did a few of my clients, some of whom brought such opportunities to my attention. All my private placements were approved by predecessor firms (A.G. Edwards and Wachovia) later acquired by WFA. Each private investment was always fully disclosed annually to all employers. These investments were made as far back as 2003 and none are recent. I have violated no industry rules, regulations or standards of conduct and the uncompleted WFA review has not found otherwise.

July 2009 Customer Dispute

• Status: Settled
• Allegations: Client alleges that contingent deferred sales charges were not disclosed at the time of purchase. (06/05/2009)
• Damage Amount Requested: $48,547.75
• Settlement Amount: $48,547.75
• Broker Comment: The client maintains an active relationship with the financial advisor. 

Contact Us Today

The Sonn Law Group is currently investigating allegations that Joseph Pratt committed misconduct. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.