Cadaret Grant & Company Sanctioned Over Alleged Supervisory Failures, Fined $800,000

Cadaret Grant & CompanyPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on October 4, 2018 indicate that New York-based broker-dealer firm Cadaret Grant & Company was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints Cadaret Grant & Company (CRD# 10641).

Established in Delaware in 1981, Cadaret Grant & Company is headquartered in Syracuse, New York and registered with 52 US states and territories. According to its BrokerCheck report, it has been involved in 14 regulatory events and four customer complaints that evolved into arbitration.

In September 2018 FINRA sanctioned the firm in connection to allegations it failed to establish reasonably designed supervisory systems and procedures “with respect to numerous areas of its business.” Among other findings, FINRA stated that the firm’s supervisory failures were in part due to its failure to dedicate sufficient resources to the supervision of firm personnel, and that it failed to create and maintain a system that was reasonably designed to ensure that representatives made investment recommendations that were suitable for customers and that complied with relevant securities rules and regulations. In connection to these allegations, the firm was censured and issued a fine of $800,000.

In September 2018 the Securities and Exchange Commission sanctioned Cadaret Grant & Company in connection with allegations it failed to reasonably supervise certain representatives’ recommendations that clients purchase and hold leveraged and inverse exchange traded funds and exchange traded notes. The firm was censured and issued a fine of $500,000.

In 2017 FINRA sanctioned the firm in connection to allegations it failed to enforce written supervisory procedures and perform a suitability review of a representative’s transactions in a customer’s variable annuity investment. FINRA’s findings stated additionally that the representative’s basis for recommending the annuity in question may not have been suitable for the customer. The firm was censured and issued a fine of $10,000.

In 2015 FINRA sanctioned the firm in connection to allegations it failed to establish and maintain a supervisory system that was reasonably designed to supervise certain variable annuity surrender transactions. The firm was censured and issued a fine of $75,000.

In 2003 a customer alleged Cadaret Grant & Company breached its fiduciary duty, omitted material facts, breached contract, and recommended an unsuitable investment or investments. The complaint resulted in an award to the customer of $464,514.

If you or someone you know has lost money investing with Cadaret Grant & Company, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.