George Louis McCaffrey III, a former registered stockbroker submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been fined and suspended for participating in private securities transactions.
McCaffrey was registered with NTB Financial Corporation as a general securities representative and agent from July 1989 until his termination in October 2017. According to FINRA, Mr. McCaffrey participated in a total of 22 undisclosed private transactions, in which ten investors purchased $1,775,000 in debt and equity securities without first providing notice to his firm. The findings stated that McCaffrey introduced these customers to representatives of a greenhouse building and leasing company, so they would make an investment. McCaffrey allegedly reviewed and edited the documents for the investment and forwarded investment-related documents to the customers. The findings stated that the investors purchased $1,775,000 in promissory notes and McCaffrey received $124,250 in commissions from these transactions. In addition, FINRA stated McCaffrey incorrectly indicated that he had not participated in private securities transactions.
Without admitting or denying FINRA’s findings, McCaffrey was assessed a fine of $15,000, suspended from association with any FINRA member in all capacities for 18 months and ordered to pay $124,250 in deferred disgorgement of commissions he received. The suspension remains in effect from September 17, 2018, through May 16, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from private transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like NTB Financial Corporation, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your NTB Financial Corporation account due to private transactions by your broker? Was George Louis McCaffrey III your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against NTB Financial Corporation stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.