FINRA Sanctions Cadaret Grant for Ex-rep’s Alleged Ponzi-scheme
According to The Financial Industry Regulatory Authority (FINRA) on Monday, the regulator has fined broker-dealer Cadaret Grant $200,000, alleging the firm failed to reasonably supervise a former broker in connection with a purported Ponzi-scheme.
Without admitting or denying the findings, the firm reported consented on June 4 to the fine and censure and FINRA accepted the letter.
From April 2014 to March 2017, the firm allegedly failed to reasonably supervise a registered representative, identified in the letter only as “SP,” for alleged multiple undisclosed private securities transactions, according to the Letter of Acceptance, Waiver and Consent.
The private securities transactions were reportedly “part of a Ponzi scheme that SP orchestrated, which resulted in millions of dollars in losses to its victims,” according to FINRA. The firm “failed to take reasonable steps to investigate red flags that SP was involved in private securities transactions,” according to FINRA.
This is reportedly the second time since 2012 that FINRA has sanctioned Cadaret Grant for failure to supervise in regards to alleged sales practice violations. The firm was censured and fined $200,000 on the previous occasion as well.
Filing a Complaint against your Brokerage Firm
When brokers violate securities laws, such as making unsuitable investments or churning customers accounts, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
Filing a Complaint against your Brokerage Firm
We represent investors in FINRA arbitration claims in all 50 states. If you are concerned about your investments with Cadaret Grant, you may be able to file a complaint against the brokerage firm. Please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
Tags: Cadaret Grant AWC, Cadaret Grant complaint, Cadaret Grant fined, Cadaret Grant FINRA, Cadaret Grant investigation, Cadaret Grant investment losses, Cadaret Grant ponzi-scheme, Cadaret Grant recovery options, Cadaret Grant sanctioned, Cadaret Grant lawsuit Last modified: January 24, 2024
