Ex-New York Financial Advisor Was Barred by FINRA in 2014
Nearly seven years after he was barred by the Financial Industry Regulatory Authority and fired by Ameriprise Financial Services, ex-New York broker Ted Wayne Cadwallader continues to be accused of making unsuitable investment recommendations that caused them significant losses.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is investigating these claims. If you suffered losses while working with ex-stockbroker Ted Cadwallader, contact SSEK Law Firm today at (800) 259-9010. You can also speak with our New York unsuitability investment attorneys at (716) 261-3529.
Misrepresentations and Omissions Alleged by Ted Cadwallader’s Customers
Cadwallader was an Ameriprise advisor and broker from August 1999 until his termination in October 2014. BrokerCheck notes that he was let go for violating compliance policies related to private securities transactions and outside business activities.
He was barred by FINRA in December 2020 after refusing to cooperate in the self-regulatory organization’s investigation into those same allegations. Cadwallader also used to be an IDS Life Insurance Company registered representative in Minneapolis, Minnesota from 1999 to 2006.
BrokerCheck notes six customer disputes already on Ted Cadwallader’s record:
- May 2021: Misrepresentations involving a private security placement were alleged. The customer requested over $151K in damages. The claim was denied.
- January 2019: These investors accused Cadwallader of making unsuitable investment recommendations in Adiabatic Solutions, LLC. The securities case was resolved with a $90K settlement.
- November 2018: Involving private securities that the customer was unable to redeem, this investor requested $35K in damages. The case was denied.
- June 2010: Alleging that the exchange-traded fund sold was too risky for this investor, this customer dispute was denied.
- June 2005: Another customer claimed that the investment sold to her was unsuitable given her risk tolerance level. This investor sought $240K in damages. The case was denied.
- January 2004: Alleging unsuitability and omissions related to annuities, this investor received a nearly $14K settlement.
The ex-Ameriprise Financial advisor has also been accused of unsuitably selling Regulus Energy and Pacer Energy investment products to customers.
Brokers can often misrepresent investments to investors in order to disguise the risks that are associated with those investment products. This is especially true in cases where the broker could potentially make high commissions on the sale of those products. This type of securities fraud is extremely serious and can lead to devastating losses for an investor.
Did Ameriprise Financial Fail To Properly Supervise Cadwallader?
Brokerage firms have a duty to properly oversee their financial advisors, including making sure that their recommendations to customers are suitable. When broker misconduct or poor investment recommendations lead to investor losses, the broker-dealer may be held liable through FINRA arbitration.
In this case, Ameriprise Financial did not do their due diligence of ensuring that their registered representative was acting in the best interests of his customers and their investment objectives. As a result, these investors suffered financial losses that could easily have been avoided.
Contact us online today for a complimentary consultation if you believe that you suffered investment losses while working with Ted Cadwallader or any other Ameriprise Financial broker. Our investment fraud attorneys have over 100 years of combined experience in the securities industry. Reach out to organize your complimentary case consultation.