Charles Deremo Was Sanctioned by FINRA

Charles Deremo

Publicly available records published by the Financial Industry Regulatory Authority (FINRA) on February 27, 2017 indicate that former Minnesota-based Cadaret Grant broker Charles Deremo has been sanctioned by FINRA and is currently not affiliated with any broker-dealer firm. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Deremo (CRD# 713036).

Charles Deremo has spent 36 years in the securities industry and has been registered with Cadaret Grant & Company in Eagan, Minnesota (1995-2017). Previous registrations include Royal Alliance Associates in New York, New York; Lincoln National Insurance Company in Fort Wayne, Indiana; Integrated Resources Equity Corporation; and American Express Financial Advisors in Minneapolis. He has passed three securities industry examinations: Series 63 (Uniform Securities Agent State Law Examination); Series 7 (General Securities Representative Examination); Series 1 (Registered Representative Examination); and Series 26 (Investment Company Products/Variable Contracts Principal Examination). He is currently not registered with any state or firm.

According to his BrokerCheck report, Charles Deremo has received three customer complaints, one pending customer complaint, and one FINRA sanction.

In January 2017 FINRA sanctioned him following allegations he employed an unsuitable strategy for a customer. According to FINRA’s findings: “[Mr.] Deremo recommended that the customer exchange his existing variable annuity for a new variable annuity issued by another entity so that Deremo could execute a strategy wherein he would, at his discretion, move the full account balance between a precious metals fund subaccount (Precious Metals Fund) and a money market subaccount based on market factors monitored by Deremo. Specifically Deremo planned to move the customer’s funds back and forth between the two subaccounts based on his monitoring of certain factors in the precious metals market, the most significant factor being the price of gold (the Precious Metals Strategy). At the time the customer exchanged variable annuities, he was 79 years old, and his investment objectives were growth and income. Deremo marked the customer’s risk tolerance between moderate and high risk on the customer’s new account form.” The precious metals strategy, “which represented nearly half of the customer’s disclosed net worth,” was not suitable for the customer based on his age, income needs, and selected risk tolerance, and because “the activity involved a high percentage of the customer’s net worth and all of the customer’s investible assets with Deremo were traded using the Precious Metals Strategy.” Mr. Deremo was issued fines and restitution exceeding $9,000 and was suspended for ten days.

In 2014 a customer alleged Charles Deremo, while employed at Cadaret Grant, breached his fiduciary duty and recommended unsuitable products. The complaint settled in 2015 for $100,000.

If you or someone you know has lost money investing with Charles Deremo, 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.