Richard Lee, a former registered representative with Caldwell Securities, Inc., submitted an Offer of Settlement dated October 7, 2016 and has accepted the uncontested offer that he will be suspended for 18 months in all capacities from the securities industry. It was alleged that Lee, and other representatives of the firm, made unsuitable recommendations of an active trading investment strategy to their customers and the firm may be liable for those unsuitable recommendations of an active trading investment strategy made by the representatives. The complaint alleges that they made the recommendations despite the fact that they failed to understand the risks of the investment strategy being recommended, and/or the impact the commissions and fees generated by this active trading strategy would have on the customer accounts. Because the recommendation was unsuitable, the clients lost over $1.1 million in realized trading losses, and paid over $1 million in commissions and fees. A broker must take into account a customer’s age, net worth, investment strategy and investment objectives before recommending an investment. If he does not, his brokerage firm may be liable for investment losses.
Lee was registered with Morgan Stanley, Sangimino Joseph A, David Lerner Associates, World Equity Group, Chase Investment Services and Caldwell International Securities in Englewood Cliffs, New Jersey from August 2013 until June 2015. According to his online Financial Industry Regulatory Authority (FINRA) BrokerCheck report, Lee is not currently licensed within the industry. Please call our law offices today to speak to an attorney about your options of bringing legal recourse against Caldwell International Securities. The call is free and claims can be brought against the firm in the FINRA arbitration forum on a contingency fee basis. 312-332-4200.
The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.