More than 5,000 stockbrokers who were still licensed to sell securities earlier this year after working for one or more firms that regulators expelled between 2005 and 2012, according to The Wall Street Journal.

The pattern of brokers moving from one problem firm to another, according to a former broker, is sometimes called “cockroaching.”

The Journal’s analysis reveals some of the nationwide migratory patterns of brokers associated with firms having troubled regulatory records. These brokers often remain in the industry after working at firms expelled by regulators, in some cases after the brokers accrued numerous arbitration claims or declared multiple bankruptcies.

58% of brokers from at least two expelled firms have at least one black mark on their records.  This is much higher than the 13% average for all brokers.

Always check the background of any financial professional before doing business with him or her.  It takes only a few minutes and can save you a lot of trouble.

Research brokers or brokerage firms here:
http://brokercheck.finra.org/Search/Search.aspx

Research investment advisors here:
http://www.adviserinfo.sec.gov/IAPD/Content/Search/iapd_Search.aspx