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. If you believe you have been a victim of investment fraud or misconduct at Calton & Associates, you have legal options to recover your losses. 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.
Many investors who suffer losses due to broker misconduct believe they cannot seek compensation because they signed arbitration agreements. This is not true. Even with an arbitration clause, you can pursue claims against Calton & Associates through FINRA arbitration proceedings – a legal forum specifically designed for resolving investment disputes. Time is critical, as there are strict deadlines for filing claims. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Don’t wait until it’s too late to protect your rights and recover your losses.
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 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.
How to Sue Calton & Associates for Investment Losses
What Can I Do If I Lost Money at Calton & Associates?
If you lost money at Calton & Associates due to broker misconduct, unsuitable investments, or fraud, you can pursue recovery through FINRA arbitration. FINRA arbitration is a legal proceeding where investors present their claims before a panel of arbitrators who determine whether the brokerage firm or its advisors are liable for your losses. Unlike court litigation, FINRA arbitration is typically faster and less formal, but it still requires strong evidence and experienced legal representation to succeed.
The documented regulatory problems at Calton & Associates – including supervisory failures with exchange traded products, SEC charges for breaching fiduciary duty, and broker misconduct cases – provide a foundation for investor claims. These violations demonstrate a pattern of inadequate oversight and compliance failures that may have directly contributed to your investment losses. When a brokerage firm repeatedly fails to supervise its advisors or implement proper safeguards, investors who suffer harm can hold the firm accountable.
Even if you signed an arbitration agreement when opening your account, you still have the right to pursue claims. These agreements simply mean your case will be heard in FINRA arbitration rather than court. The arbitration process allows you to seek full compensation for your losses, including damages for fraud, breach of fiduciary duty, unsuitable investment recommendations, and failure to supervise.
Who Can Help Me Sue Calton & Associates?
Pursuing a successful claim against Calton & Associates requires an attorney with specific experience in securities arbitration. The Law Offices of Robert Wayne Pearce has handled numerous cases involving independent broker-dealers and understands the supervisory failures and compliance issues that plague firms like Calton & Associates. Our firm knows how to build compelling cases that connect a firm’s documented regulatory violations to individual investor losses, presenting evidence that resonates with arbitration panels.
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.
Why Does Calton & Associates Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Calton & Associates are known for weak supervisory practices. Their business model focuses on opening many offices nationwide to generate steady revenues without the costs of full-service branch offices with on-site managers and compliance staff. The registered representatives at these firms typically operate as separate businesses, not as employees, which means they face less direct oversight than representatives at traditional brokerage firms.
The supervisory structure at independent broker-dealers relies on other independent contractors running Offices of Supervisory Jurisdiction (OSJs) to monitor representatives from remote locations. These OSJ managers aren’t full-time employees dedicated solely to supervision – they often run their own brokerage, insurance, and other businesses. Because OSJ managers cannot monitor day-to-day operations from a distance, investors become vulnerable to misconduct.
Without immediate review of new accounts, securities transactions, business records, or client correspondence, problematic activities can go undetected. There may be no one on-site to catch forged signatures, inaccurate client information used to justify unsuitable investments, or misleading statements made to investors. Many of these offices receive only one compliance audit visit per year – far too infrequent to prevent fraud or negligence.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealers than at traditional firms with on-site supervisory personnel. This structural weakness in the independent broker-dealer model directly contributes to the high volume of regulatory problems and customer complaints at firms like Calton & Associates.
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.
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.
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 45 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. Over the decades, the firm has recovered more than $175 million on behalf of defrauded investors.
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.
