She was Only a Client Associate but She Stole from Clients at Two Wirehouses
As if advisors needed another example of why compliance seems to be all over them these days, here’s a message from the Securities and Exchange Commission about keeping careful watch over fellow team members.
The regulator on Tuesday barred Terry Pickering Lobelsky, 59, from working in the securities industry in any capacity, doubling down on a bar from her employment with a broker-dealer that the Financial Industry Regulatory Authority imposed earlier. Pickering, as she is known on her BrokerCheck registration, was also convicted of a single count of mail fraud in federal court in Florida last year.
She was sentenced in June to two years of home detention and five years of probation for admitting to have stolen $136,000 from at least three clients between 2011 and 2013 at offices of UBS Financial Services and Morgan Stanley in Boca Raton and Fort Lauderdale, respectively. She was ordered to pay $248,797 in restitution and perform 300 hours of community service.
Lobelsky issued checks from customer accounts to her personal bank accounts and to her home mortgage lender without immediate detection by customers or her firm associates, according to an SEC summary of the criminal case.
Lobelsky, who admitted to the SEC’s findings, did not respond to a request for comment through her lawyer.
Documents in the court and regulatory cases do not disclose how the fraud came to light, but neither Morgan Stanley nor UBS were named as defendants by federal prosecutors, the SEC or Finra.
Lobelsky’s BrokerCheck database history under the name Terry L. Pickering has eight disclosure events, all relating to the stolen client funds. Morgan Stanley fired her in 2013 after less than two years of employment. She voluntarily resigned from UBS in October 2011 after more than four years while she was under investigation for altering client-contact information. Lobelsky, who began her brokerage industry career at Citigroup in September 1998, has no disclosures prior to October 2011.
Spokespeople for Morgan Stanley and UBS did not immediately respond to emails for comment.