Investor Alert > Former Broker John Cutshall Allegedly Abused His Role as Trustee for Trusts that He Administered

Posted Jul 21, 2019

by Alan Rosca

Former Broker John Cutshall Allegedly Abused His Role as Trustee for Trusts that He Administered

Ex Broker John Cutshall Allegedly Abused His Position in Two Trusts

Former broker John William Cutshall allegedly abused his position as a trustee for trusts that he administered on behalf of separate customers, by converting and improperly using funds from these trusts, according to an Employment Separation After Allegations Disclosure and under review by investor rights attorney Alan Rosca.

The aforementioned dispute was filed on April 11, 2019, and also states that said separate customers allegedly included a married deceased couple and an elderly then 91-year widow, FINRA notes.

Cutshall, the Complaint further alleges, took approximately $400,000 from the account of the aforementioned deceased customers’ residuary trust by purportedly using his position as trustee to write checks drawn against the trust’s account at his member firm and depositing the checks into his personal bank account, FINRA reports.

Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to former broker John Cutshall’s alleged abuse as trustee for trusts he administered. Investors who believe they may have lost money in activity related to broker John Cutshall’s alleged abuse as trustee for trusts he administered are encouraged to contact attorney Alan Rosca with any useful information or for a free, no-obligation discussion about their options.

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John Cutshall Barred by FINRA; Cutshall Discharged by Lombard Securities Incorporated

Former broker John Cutshall, after having already allegedly taken $400,000 from the trust, made claims for the first time that there was a handwritten note purportedly signed by the deceased customer, the husband, according to a Final Regulatory Action filed on August 10, 2018 on Cutshall’s FINRA BrokerCheck Report.

Cutshall, rather than consult with the lawyer who drafted and witnessed the original deceased couple’s trusts, allegedly hired a different law firm to, among other things, give him an opinion regarding the enforceability of the handwritten note, FINRA states.

Said law firm reportedly advised Cutshall to return the money that he allegedly took from the account of the residuary trust so that they could perform an accounting of trust assets based on the value of the husband’s trust and the wife’s trust as of a particular date, FINRA reports. Cutshall then allegedly repaid the residuary trust only $229,100 and he purportedly kept the difference of $170,900, FINRA notes.

John Cutshall, based on the aforementioned alleged behavior, has been barred by FINRA and was discharged by Lombard Securities Incorporated, FINRA states.

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.

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Securities Lawyer Investigating

The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating broker John Cutshall’s alleged abuse as trustee for trusts he administered. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of John Cutshall’s alleged abuse as trustee for trusts he administered may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.

DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

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