The Financial Industry Regulatory Authority's Department of Enforcement has filed a complaint against a Scottsdale, Ariz., broker for trying to collect a $1.8 million inheritance from the estate of an elderly client who had Alzheimer’s disease.
Since 1982, John A. Waszolek was the broker for a woman identified only as "JL" in the complaint. When her health and mental capacity deteriorated, Waszolek had himself named as beneficiary to her estate. He was to receive money from her estate that had previously been designated for four charities, Finra said.
Waszolek has agreed to the disbarment without admitting guilt, Finra announced July 13.
At the time Waszolek worked for UBS and then for Morgan Stanley, but did not inform either that he was named beneficiary of the estate of one of his clients, which is a conflict of interest under most companies’ policies.
The scheme came to light after a bank refused to disburse the estate to Waszolek unless Morgan Stanley approved, which it did not. In the complaint filed June 11, the Finra Department of Enforcement is asking Finra to impose sanctions and monetary penalties against Waszolek.