Cadaret, Grant & Co., Inc. of Syracuse, New York and Stockbroker Charles Lee Deremo of Apple Valley, Minnesota submitted a Letter of Acceptance, Waiver and Consent.
If you invested with either Cadaret or Deremo, please call 1-866-817-0201 for a free consultation with an attorney.
Cadaret was censured and fined $10,000 and Deremo was fined of $5,000,
suspended from association with any FINRA member, which is any stockbrokerage or financial advisory firm, in any capacity for 10 business days.
The firm and Deremo consented to the sanctions and to the entry of findings that the firm failed to enforce its own procedures and conduct an adequate suitability review of Deremo’s recommended investment strategy for a customer. This is in violation of FINRA rules that require a brokerage firm to review recommendations of brokers to verify that the recommendations are suitable.
The findings, which were neither admitted nor denied, stated that the firm failed to identify that Deremo’s basis for the recommendation of a strategy for the customer may not have been suitable given the customer’s age, his investment objectives, his risk tolerance and the concentration of his investment. Moreover, the customer relied on monthly withdrawals from his variable annuity for living expenses.
The regulatory document giving more details of the underlying facts can be found with the following link.
If you believe you were also sold unsuitable securities, please call the number above for a free consultation on your legal rights and whether you have grounds for recovery. Regulatory actions such as this can often expose the basis for additional private actions.