Elderly Couple Wins $600,000 After Jerome Krause Allegedly Took $150,000

An elderly couple washas been awarded $600,000 in damages after a former broker, Jerome S. Krause (also known as Jerry Krause), allegedly took over $150,000 from them. The ruling, handed down by an arbitrator under the auspices of the Financial Industry Regulatory Authority (FINRA), reveals how Krause used his position of trust to borrow money from his clients without their knowledge or consent.

How Jerome Krause Took Advantage of Trust

From 2010 to 2014, Jerome Krause allegedly borrowed more than $150,000 from the couple, who were both in their 80s. Krause claimed the money would be loans but took it without telling them. To get the money, he even sold some of their investments without their approval. The couple didn’t know anything about these transactions until it was too late.

Key details of the allegations include:

• Krause borrowed over $150,000 from the elderly couple without their consent.

• He liquidated their investments to finance these loans.

• The couple was unaware of these actions until later.

Lack of Supervision by First Heartland Capital

It wasn’t just Krause’s actions that were called into question. His former employer, First Heartland Capital, also faced scrutiny. The couple’s lawsuit pointed out that the firm failed to properly supervise Krause, even after he was fired in 2012 for a similar incident. First Heartland Capital had rules in place that forbade borrowing from clients, yet those rules were apparently ignored during Krause’s time at the firm.

Legal Outcome: $600,000 Awarded to Victims

After investigating the case, FINRA ruled in favor of the couple. They were awarded $600,000 to make up for the money that was taken from them, as well as $18,000 in attorney fees. This case highlights how serious the consequences can be for brokers who betray the trust of their clients—especially vulnerable ones like elderly investors.

Key legal outcomes include:

• The couple was awarded $600,000 in damages.

• They were also granted $18,000 in attorney fees.

• The case serves as a reminder of the importance of accountability in the financial industry.

Jerome Krause’s History in the Securities Industry

Jerome Krause had worked in the securities industry for 24 years, with roles at two major firms:

• First Heartland Capital, Inc. (2005 – 2012) – Memomonee Falls, WI

• Thrivent Investment Management, Inc. (1987 – 2005) – Minneapolis, MN

Even though Krause had a long career, his actions have now left a permanent stain on his reputation in the financial world.

What to Do If You’ve Been Affected

This case serves as a warning of what can happen when brokers take advantage of their clients. If you think you or someone you know has been a victim of similar misconduct, it’s important to take action. Don’t wait—consult with a securities fraud attorney to see if you have a case for recovering your losses.

If you’ve been affected, here’s what you can do:

• Document your losses – Gather account statements, trade confirmations, and any communication with the broker.

• Consult a securities attorney – Our team of securities fraud attorneys can help you understand your rights and determine if you have a case for recovery.

• Take action – Don’t let time slip away. You may be entitled to financial compensation.

The story of this elderly couple is a reminder that there is help available, and people who take advantage of others can be held accountable. If you’ve been impacted by a broker’s actions, you don’t have to go through it alone—there are legal avenues to get the compensation you deserve.