December 31, 2015- Fischer, Texas
On December 31, 2015, the Financial Industry Regulatory Authority (FINRA) filed a complaint against Caldwell International Securities alleging that firm founder Greg Caldwell and supervisors Paul Jacobs and Lennie Freiman failed to supervise brokers in New York and New Jersey allowing them to churn customer accounts.
According to FINRA:
- Caldwell International and the named individuals put profits before customers, growth before compliance and subterfuge before transparency creating a culture of non-compliance in the firm
- From 12/1/2010-7/31/2014 Caldwell International allowed many of its brokers to recommend an unsuitable active trading strategy that the brokers did not understand causing significant losses to customers while the company generated substantial profits.
- Caldwell International was aware of virtually all of the alleged misconduct, yet took no meaningful steps to curtail and supervise it for fear reducing the commissions and fees which it was generating.
- Fifteen customer accounts lost over $1.1 million while paying over $1 million in commissions.
Others named in the complaint are:
- Alain Florestan
- Alex Etter
- Lucas Lichtman
- Richard Lim
- Richard Lee
The complaint seeks findings that the company violated Section 10(b) of the Exchange Act, disgorgement of ill gotten gains and other relief.
Caldwell International has nine branches and 20 brokers located in New York, New Jersey, Illinois, Texas, Florida and Nevada. Fischer, Texas is located just north of San Antonio, TX, near Canyon Lake.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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