Th is is a tale of marital woe. At the urging of her husband, Phyllis Th ropp placed $40,000 in a…

Th is is a tale of marital woe. At the urging of her husband, Phyllis Th ropp placed $40,000 in a brokerage account with her husband’s friend Richard Gregory, a broker at Bache Halsey. Mrs. Th ropp opened the account in her name alone and did not authorize Gregory to discuss the account with Mr. Th ropp, nor did she authorize Mr. Th ropp to act for her. Undeterred by this technicality, Mr. Th ropp forged his wife’s name to a power of attorney that authorized him to make decisions for her. He gave this document to Gregory. In the course of the next year, Mr. Th ropp ordered Gregory to sell his wife’s securities and issue checks to her. After forging her name to the checks, he cashed them and used the money to pay his gambling debts. Gregory did not process the power of attorney form according to standard Bache procedures. When the Th ropps saw Gregory socially, Mrs. Th ropp frequently asked him how her account was doing. Gregory somehow neglected to mention that it was not doing very well at all. He never told her about the numerous sales. Can this marriage be saved? No, the Th ropps were divorced. Did Richard Gregory violate his fi duciary duty to Mrs. Th ropp?

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