Cadaret, Grant & Company: Regulatory History Overview 

Cadaret, Grant & Company – Broker Misconduct and Regulatory Actions

Cadaret, Grant & Company, Inc. (CRD#: 10641 / SEC#: 801-42709, 8-27844), a dual-registered broker-dealer and investment adviser headquartered in Syracuse, New York, is a subsidiary of Atria Wealth Solutions. The firm has a long regulatory history that includes multiple sanctions and supervisory failures.

LPL Financial to Acquire Atria Broker Dealers

In February 2024, LPL Financial Holdings Inc. announced it would acquire Atria Wealth Solutions, the parent of Cadaret, Grant. Atria oversees approximately $100 billion in assets across 2,400 advisors and 150 banks and credit unions. The acquisition includes several Atria subsidiaries:

• Cadaret, Grant & Co.
• CUSO Financial Services
• NEXT Financial Group
• SCF Securities
• Grove Point Financial
• Sorrento Pacific Financial
• Western International Securities

The transition is expected to complete by mid-2025, pending regulatory approval.

SEC Charges – Breach of Fiduciary Duty

Cadaret, Grant was charged by the SEC for failing to disclose conflicts of interest between 2017 and 2022. The firm received revenue sharing payments and transaction markups from third parties but failed to properly disclose them. The firm also allegedly failed to:

• Seek best execution for its clients
• Implement adequate compliance systems

Cadaret, Grant agreed to pay over $6 million in penalties and restitution, though it neither admitted nor denied the allegations.

Failure to Supervise – Alleged Ponzi Scheme

July 1, 2020 – FINRA fined Cadaret, Grant $200,000 for failing to supervise a former registered representative involved in undisclosed private securities transactions that were part of an alleged Ponzi scheme. This marked the second time since 2012 that Cadaret Grant has been sanctioned for similar supervisory issues.

SEC & FINRA Sanctions – Ongoing Supervisory Failures

September 2018 – FINRA censured and fined Cadaret Grant $800,000 for supervisory deficiencies between 2012 and 2017. The firm only had three supervisory staff overseeing the activity of over 676 representatives in 450 branch offices. Earlier fines include:

• December 2011
• May 2015
• December 2016

Conflicts of Interest

June 28, 2017 – The SEC found Cadaret Grant violated securities laws from 2011 to 2016 by:

• Failing to disclose mutual fund share class selection conflicts
• Retaining prepaid advisory fees from clients who terminated early

The firm was ordered to pay over $3 million in disgorgement, interest, and penalties.

Improper Variable Annuities Sales to Elderly Clients

March 2012 – Cadaret Grant was fined $200,000 by FINRA for unsuitable sales of variable annuities to elderly clients. Thirteen investors aged 77 or older were sold expensive riders that expired at age 80, offering little to no value. FINRA required the firm to:

• Offer restitution
• Review and revise its annuity suitability policies

Broker Misconduct – Gerald Dewes & Other Advisors

Gerald Roger Dewes (CRD#: 2465538) Former Cadaret, Grant broker Gerald Dewes was permanently barred by FINRA in March 2020 for refusing to cooperate in an investigation regarding undisclosed private securities transactions. Dewes was previously terminated by Cadaret Grant over allegations of selling away and fund conversion. Dewes has 10 disclosures on his FINRA BrokerCheck record, including:

• Multiple customer complaints
• Settlements totaling more than $2.5 million

Steven Pagartanis – $9 Million Fraud Scheme In January 2020, former Cadaret Grant advisor Steven Pagartanis was sentenced to 170 months in prison for defrauding elderly clients out of $9 million. FINRA barred Pagartanis in 2018 for running a Ponzi-like scheme, using investor funds for personal expenses.

Recovering Investment Losses

When financial advisors violate securities laws, their employing firms can often be held liable for damages through FINRA arbitration. Cadaret, Grant has faced repeated scrutiny for its failure to adequately supervise brokers and safeguard client assets. If you have suffered losses investing with Cadaret, Grant or one of its representatives, you may have recovery options through FINRA arbitration.

National Securities Attorneys

The White Law Group is a national securities fraud law firm with experience handling over 800 FINRA arbitration claims. We represent investors across the country in claims involving:

• Misrepresentation
• Unsuitable investments
• Selling away
• Unauthorized trading
• Fraud

Free Consultation with a Securities Attorney

To speak with a securities attorney about your potential claim against Cadaret, Grant & Company, call 888-637-5510 or visit our website.

FAQs about Cadaret, Grant & Company

1. What is “selling away” in securities law?

Selling away occurs when a broker sells securities that are not approved or offered by their employing firm. This is a violation of FINRA rules and often results in sanctions or investor losses.

2. Can I sue Cadaret, Grant if I lost money because of my broker?

Possibly. If your losses were due to fraud, negligence, or unsuitable investment recommendations, you may be able to file a FINRA arbitration claim against the firm for failure to supervise the broker.

3. How do I check if a Cadaret, Grant advisor has prior complaints?

You can look up an advisor’s history using FINRA’s BrokerCheck tool. It shows disclosures such as customer complaints, regulatory sanctions, terminations, and suspensions.