Failure To Supervise Attorneys

Did You Suffer Investment Losses While Working With Investment Advisor Thomas Chadwick

Investors File FINRA Lawsuit Against Fidelity Brokerage Services Alleging $11M in Losses

If you sustained serious portfolio losses while working with financial advisor Thomas Chadwick, Shepherd Smith Edwards and Kantas (investorlawyers.com) want to talk to you. Chadwick, who runs the investment advisory firm Chadwick & D’Amato in New Hampshire, is accused of losing more than $11M of about 100 investors’ money while using Fidelity Brokerage Service’s platform. Now, the broker-dealer is the respondent in a Financial Industry Regulatory Authority (FINRA) lawsuit.

The Claimants—four investors who worked with Chadwick—are accusing Fidelity of breach of fiduciary duty, failure to supervise, negligence, breach of contract, negligent misrepresentation, breach of contract, aiding and abetting breach of fiduciary duty, aiding and abetting fraud, and more. They contend that he involved them in “disastrous” investment strategies and inappropriately invested their life savings in high-risk investments while allegedly committing fraud. The investors claim that Fidelity ignored obvious red flags.

The failure to supervise case states that Thomas Chadwick worked with elderly and retiree clients who had low-to-moderate risk tolerance and principal loss levels. These investors set up Fidelity brokerage accounts to which they gave him access.

Last year, Chadwick consented to pay nearly $6M, which included almost $5M in restitution, to investors who sustained losses in risky securities. This included a complex product made of unsecured debt securities that was traded using the ticker symbol REML. This investment’s own prospectus notes that it is volatile and comes with the possibility that investors could lose part of or even their entire investment if they hold REML in their accounts for more than a month. The prospectus also specifies that REML is an unsuitable recommendation for investors who need fixed-income payments from their investment accounts.

The New Hampshire Bureau of Securities Regulation, which filed that case against Thomas Chadwick, alleges that he committed investment adviser fraud. It also accused Chadwick in a different case of allegedly fraudulently using customers’ usernames and passwords to get into Fidelity brokerage accounts and make trades.

Why You Need To Work With Knowledgeable Failure To Supervise Attorneys?

Shepherd Smith Edwards and Kantas represent the victims of broker fraud in which a broker-dealer failed to properly supervise their registered representatives and activities in customers’ accounts. Even if the financial advisor isn’t officially registered with the firm, if they used a brokerage firm’s platform to manage customers’ accounts, the latter could be held liable if stockbroker fraud or negligence occurred during what should have been their watch.

Our failure to supervise attorneys knows how to recognize when a breach of fiduciary duty has happened and how to maximize your chances for a full recovery if you do have grounds for a claim. Even if regulatory charges have been brought against your financial advisor, you still may be able to file your own case against the brokerage firm seeking damages.

Many of us are former brokers who left the industry because we didn’t like a lot of the lax and unsavory practices we witnessed. It is why we do what we do now, protecting investors and fighting for their right to financial recovery.

Call our Failure To Supervise Attorneys at (800) 259-9010 or fill out this form.