The Financial Industry Regulatory Authority permanently barred Rasheed “Richard” Adams, a former broker with Caldwell International Securities Corporation, from the securities industry on Thursday.
The action stemmed from allegations that Adams failed to divulge a dozen unsatisfied judgments and liens on his U4 Registration Form. FINRA claims that from July 2013 to June 2014, Adams deceptively traded and churned two major clients’ accounts in a fashion that directly opposed those customers’ financial situations, needs and investment objectives. Moreover, Adams willfully failed to provide documents and information FINRA had requested from him, and consequently he was found in violation of the Wall Street regulator's rules.
Adams’ actions allegedly resulted in a $37,000 loss for his clients, as well as the unlawful production of more than $57,000 in commissions, according to FINRA.
“A key element of retail investor protection is the aggressive pursuit of brokers who churn and excessively trade customer accounts. FINRA has no tolerance for brokers who place commissions ahead of what is suitable and appropriate for their customers, Brad Bennett, FINRA’s executive vice president and chief of enforcement, said in a statement.
Adams neither admits to nor denies the allegations, yet agreed to FINRA’s findings and ban, effectively immediately. He first registered with FINRA in 1997, and had no prior disciplinary history.
