BRIDGEWATER -- The chairman of the town's Board of Finance has resigned from the board in the wake of reports he has been fired from his place of employment and is under investigation for alleged possible misdeeds.
Gregory Buchholz was terminated two weeks ago from his investment adviser position with Raymond James Financial Services Inc. in Southbury, a company spokesman, Anthea Penrose, said Tuesday.
According to the spokesman, Buchholz was fired after the company learned he was under investigation for alleged misappropriation of investors' funds.
Penrose said the financial firm was contacted by authorities about the investigation, and it terminated Buchholz's employment.
The company closed its Southbury branch office, where Buchholz had worked.
Penrose would not say how much money may have been misappropriated.
A publicly traded company, Raymond James Financial Services is regulated by the Federal Commerce Commission. The investigation is being conducted on a local and federal level, Penrose said.
"Raymond James confirms a former ... financial services adviser, Gregory Buchholz, is being investigated for allegedly misappropriating client funds. The firm ... is cooperating fully with authorities in the investigation of this matter," a prepared statement by the company reads.
Calls to Buchholz's home Tuesday were not returned.
Bridgewater First Selectman Bill Stuart said he was stunned by the allegations.
"I just can't believe it," Stuart said. "When this happens with someone who has been on one of your boards for a long time and who's done a good job, it's hard to believe."
Stuart said Buchholz came to Town Hall on Tuesday morning and told him he would be resigning from the finance board and also from theBridgewater Board of Trustees, of which Buchholz was vice chairman.
Buchholz served on the finance board since 2001 and was appointed to the Board of Trustees in 2007.
"The last thing people ought to be doing is speculating on matters yet to be proven," said Ned Bandler, chairman of the Board of Trustees.
"I've worked closely with George," Bandler said. "He has been a valued colleague, a strong contributor in the work of managing the town's trust funds."
Bandler said Buchholz did not manage any money for the board.
The present allegations of mismanagement of funds are not the first to be made against Buchholz.
In February 1999, the state Department of Banking's Securities and Business Investments Division issued a consent order, restricting Buchholz's work as a financial agent.
It required Raymond James Financial Services to give prior approval to any trades Buchholz made with clients' mutual funds, according to a department securities bulletin.
The consent order was based on allegations that while he was associated with Edward D. Jones & Co., Buchholz "engaged in unsuitable investment strategies with respect to certain mutual fund transactions," the bulletin says.
Contact Susan Tuz
at stuz@newstimes.com
or 860-355-7322.
