IFS Broker Keith Wakefield Convicted Of Securities And Wire Fraud

Former IFS Securities bond trader Keith Wakefield (CRD# 3250539) has been found guilty of securities and wire fraud as a broker at the now-defunct IFS Securities. He was convicted in federal court in the Northern District of Illinois. The jury found that he inflated the commissions on his trades and entered false and unauthorized trades that caused losses of $30 million to the firm.

The losses were originally reported as $10 million. Ultimately, those losses due to inflated commissions, false and unauthorized trades and shorting treasury bonds totaled $30 million.

These losses were substantial enough that it led to the eventual shutdown of Atlanta-based IFS Securities in early 2020. IFS did not have funds available to settle the bond trades, according to published reports at the time.

The focus of the case was Wakefield’s trading activities between 2017 and 2019, in which he made mistakes trading Treasuries and municipal bonds. In his testimony, he claimed that the continued trading was not to enrich himself, but to try and “fix” his mistakes and make up for them.

In an article for Investment News, Silver Law Group founder Scott Silver stated, “It was $30 million that was gone. Somewhere in the firm’s systems, a big, flashing red light should have gone off. And even if the firm missed it, Wakefield didn’t stop and say, ‘I have a problem,’ but he chose to violate the law to cover up the bad act.

“This defense of what some people call a fat-finger trade was nonsensical,” Scott said. “If it were true, the trader calls the clearing firm and says, ‘I screwed up this trade.’ The clearing firm reverses it, and the trader takes the consequences of his actions.”

IFS Securities discharged Wakefield on 8/8/2019 for “fraud,” and “making fictitious trades.” FINRA eventually barred him after his refusal to comply with a request for on-the-record testimony and another requesting documents and information pertaining to the fraud and trading matters. The SEC also barred Wakefield indefinitely effective 11/1/2021.

Did You Invest With Keith Wakefield Or IFS Securities?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.