Blaine R. Stahlman

ChapmanAlbin is investigating Blaine R. Stahlman, a General Securities Principal, who was recently sanctioned by FINRA for failing to supervise adequately. According to FINRA, from March 2019 to February 2021, Stahlman did not reasonably supervise a representative’s recommendations of speculative, unrated GWG L Bonds to retail customers. These investments were unsuitable for the customers’ financial profiles, risk tolerances, and experience levels, resulting in substantial financial exposure.

The complaint further states that Stahlman failed to implement supervisory procedures for overseeing high-risk product recommendations, even after being made aware of concerns regarding GWG’s business model. Additionally, FINRA found that Stahlman did not retain or review business-related email communications, even though he knew the representative used a personal email for securities business.

Stahlman has been fined $15,000, suspended for six months in principal capacities, and required to complete continuing education on supervisory responsibilities.