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Written by 8:35 pm Blog, FINRA SEC Sanctions

FINRA Bars Former Caldwell Broker for Churning Customer Accounts

FINRA Bars Former Caldwell Broker for Churning featured by top securities fraud attorneys, the White Law Group

FINRA Issues Punishments for Churning

FINRA recently announced that they have permanently barred Richard Adams, a former registered representative of Caldwell International Securities Corp., from the securities industry for churning customers’ accounts and other securities rule violations. The Caldwell broker also failed to report a dozen unsatisfied judgments and liens on his U4 Registration Form as required by FINRA rules. FINRA found that from July 2013 to June 2014, Adams excessively traded and churned the accounts of two customers generating more than $57,000 in commissions. At the same time, the excessive trading activity in these accounts resulted in over $37,000 in customer losses.

Brad Bennett, FINRA’s Executive Vice President and Chief of Enforcement, said, “A key element of retail investor protection is the aggressive pursuit of brokers who churn and excessively trade customer accounts. FINRA has no tolerance for brokers who place commissions ahead of what is suitable and appropriate for their customers.”

In settling this matter, Adams neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

Recovery of Investment Losses

The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group.  The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For a free consultation with a securities attorney, please call the firm’s Chicago office at 888-637-5510.  For more information on the firm and its representation of investors, visit https://whitesecuritieslaw.com.

Tags: Last modified: September 21, 2023