Thursday, March 22, 2012

Robert Bales did not pay fraud judgment...and won't have to as long as he remains in the military

(Reuters) - The U.S. soldier accused of killing 16 civilians in Afghanistan left for war without paying a $1.5 million judgment for defrauding an elderly client in a stock scheme, and remains shielded from the obligation as long as he remains in the military, legal experts said.

Before beginning his military career in November, 2001, Robert Bales worked almost five-and-a-half years at a series of largely intertwined brokerages that received repeated regulatory censures, according to regulatory records.

Bales joined the Army 18 months after an Ohio investor filed an arbitration complaint alleging unauthorized trading, breach of contract and other abuses against him, his securities firm and the firm's owner. In 2003, the arbitration panel ordered them to pay the investor $1.2 million, including $637,000 in punitive damages for willful or malicious conduct and $216,500 in attorneys' fees.

Bales never appeared before the panel and did not hire a lawyer to represent him. Read More