Ex-Caldwell Broker is Barred by FINRA for Churning Accounts

The Financial Industry Regulatory Authority has permanently barred ex-Caldwell International Securities Corp. broker Richard Adams from the industry. Adams is accused of churning customer accounts.


According to FINRA, from July 2013 to June 2014, Adams engaged in excessive trading and churned the accounts of two customers, making close to $57,000 in commissions. The customers lost over $37,000 as a result.

Adams is also accused of not reporting numerous unsatisfied judgments and liens on his U4 Registration Form, which he is required to do under FINRA rules. By settling the civil case against him, Adams is not denying or admitting to the charges.

Churning
This type of illegal activity typically involves a broker engaging in the excessive selling or buying of securities in a customer account for the purpose of earning commissions. Signs of possible churning may include frequent in-and-out purchase and securities sales that appear unrelated to the customer’s investment goals.

At Shepherd Smith Edwards and Kantas, LTD LLP, our stockbroker fraud lawyers represent investor seeking to recoup their losses sustained from churning or other acts of securities fraud. To prove that churning has occurred in your account we will show that there was been a pattern of excessive trading.

When a broker engages in churning he/she will usually claim to a customer that the trades will result in fast profits. In truth, the broker is more interested in making excessive commissions
Contact our broker fraud attorneys today and ask for your free case consultation. We work on a contingency fee basis, which means that our clients do not pay legal fees unless we recover all or part of their claim.

FINRA Bars Former Caldwell Broker for Churning Customer Accounts, FINRA, August 6, 2015