Calton & Associates, Inc. (“Calton & Associates”) (CRD# 20999) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Calton & Associates, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Calton & Associates, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Calton & Associates?
If you’ve lost money caused by Calton & Associates and/or its employees’ misconduct then the answer is, YES, you can sue Calton & Associates but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Calton & Associates in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Calton & Associates is to call Attorney Pearce at our office at 800-732-2889.
What is Calton & Associates?
Calton & Associates (CRD# 20999) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Calton & Associates is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Calton & Associates Has Many Different Regulatory Problems
Calton & Associates’ rapid growth has not been without consequences. There have been approximately 12 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Calton & Associates for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Calton & Associates is a repeat offender: there are over 12 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Calton & Associates Has Faced Over the Years*
Calton & Associates has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Calton & Associates’ Supervisory Issues with Exchange Traded Products
Brief overview: In May 2019, Calton & Associates was censured and fined $250,000 by FINRA for alleged supervisory failures related to the sale of non-traditional and volatility-linked exchange traded products (ETPs). The firm was also ordered to pay restitution of $472,007.20 plus interest to customers. Calton allegedly permitted its representatives to offer these complex products to retail customers without a proper supervisory system in place, leading to financial losses when customers held the products for longer periods than intended.
SEC Charges Calton & Associates with Breaching Fiduciary Duty
Brief overview: In March 2019, the Securities and Exchange Commission (SEC) charged Calton & Associates, Inc. with breaches of fiduciary duty and inadequate disclosures related to mutual fund share class selection practices and associated fees. The firm allegedly purchased, recommended, or held higher-cost mutual fund share classes that charged 12b-1 fees, instead of lower-cost share classes for eligible clients. Calton and its associated persons received 12b-1 fees without proper disclosure, resulting in censure, disgorgement, and prejudgment interest totaling $305,044.
Failure to Report Transactions by Calton & Associates:
Brief overview: In November 2016, Calton & Associates was fined $5,000 by FINRA for failing to report transactions in Trade Reporting and Compliance Engine (TRACE)-eligible securitized products within the required timeframe. The firm consented to the sanction without admitting or denying the findings. This failure to report violated FINRA Rule 6730(a) and resulted in the imposition of a monetary fine.
Broker Misconduct and Customer Complaints at Calton & Associates
Brief overview: Brokerage firms have a responsibility to supervise their employees and detect any misconduct. When brokers engage in fraudulent activities or make unsuitable investments, the brokerage firm may be liable for investment losses. Calton & Associates has been involved in several cases of broker misconduct and fraudulent activities.
Fraud and Theft by Former Advisor Chris Kubiak
Brief overview: In September 2019, former Calton & Associates advisor Chris Kubiak was sentenced to 30 months in prison for allegedly defrauding four clients, including three senior citizens, and stealing $370,000 from them between June 2015 and August 2018. Kubiak reportedly used the stolen money for gambling and personal expenses. He was affiliated with Calton & Associates in Brookfield, WI from July 2017 until his termination in October 2018 following his arrest. FINRA subsequently barred Kubiak from working in the securities industry.
Private Securities Transactions and Misrepresentations by Former Advisor Randy Burke
Brief overview: In October 2015, former Calton advisor Randy Burke was barred from the industry for allegedly participating in private securities transactions without providing written notice to his member firm. He allegedly made misrepresentations to an elderly customer regarding her entitlement to future profits from the sale of a lodge property in Alaska. Burke reportedly deposited $38,000 of the customer’s money into a joint business checking account he shared with his wife and used it for personal gain. He also allegedly used another customer’s money in the sale of false investments in an entity called “Lodge Alaska, LLC”. Burke was registered with Calton & Associates in Hickory from September 2013 until October 2015 and has three customer disputes filed against him.
*Above are only some of the regulatory disciplinary actions filed against Calton & Associates by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 12 BrokerCheck disclosures.
Calton & Associates Customer Complaints
There have been scores of customer complaints filed against Calton & Associates stockbrokers and investment advisors over the years. We have launched many investigations of current and former Calton & Associates advisors:
- Jimmy Makris of Calton & Associates, Inc
- Richard Fredette formerly with Cantella & Co.
- Anthony Smith of Calton & Associates, Inc.
- Bart Bohrer of Calton & Associates, Inc
- Marc Seeherman of Calton Associates
- Patrick Albrecht Of Calton & Associates
- Kenneth Harter of Calton & Associates
- Richard Rodriguez formerly with Calton & Associates
- Chad Thuner formerly with Calton & Associates, Inc.
- Christopher McCoy of Calton & Associates, Inc.
- Paul Murphy of Calton & Associates, Inc.
- Ronald Segon of Next Financial Group, Inc.
- Ronald Wingerter formerly Arkadios Capital
- Shawn Spellacy of Calton & Associates, Inc.
If you have lost money investing with any of these Calton & Associates advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Calton & Associates Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Calton & Associates Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Calton & Associates is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Calton & Associates without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By Calton & Associates Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Calton & Associates cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.