Founded in 1985 and headquartered in Syracuse, New York, Cadaret, Grant & Co., Inc. (“Cadaret”) is one of the largest privately owned independent broker-dealers in the U.S. with around 750 financial professionals and $2.5B+ in assets under management (AUM). Cadaret became a FINRA member in 1982. In 1988, Cadaret purchased BNL Securities, a subsidiary of Bankers National Life. Cadaret was acquired by Atria Wealth Solutions in 2018. Today, the firm serves clients in all 50 states as well as the District of Columbia and Puerto Rico.
Financial Misconduct at Cadaret
Cadaret is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Cadaret has a long history of misconduct, complaints, and regulatory investigations. In 2010, FINRA fined Cadaret $125,000 for failing to maintain an adequate supervisory system. The firm failed to provide guidance to brokers, supervisors, and trading personnel on UIT sales in order to ensure that the proper discounts were provided.
In 2012, FINRA fined Cadaret $200,000 for allegedly recommending unsuitable investments, in particular variable annuities, to its clients. Cadaret was also censured for failing to supervise the representative who was responsible for giving unsuitable recommendations. Some elderly clients who were close to 80 or over the age of 80 were offered variable annuities that were sold with a rider that offered a potential increase to the death benefit prior to age 80. This was unsuitable because the clients that paid for a rider wouldn’t be able to use it or were ineligible to use it at the time of purchase. The sale of annuities constituted more than 94% of the representative’s business at Cadaret.
In 2019, Pennsylvania Counsel, Seamus Dubbs, initiated a proceeding against Cadaret, which was sanctioned to pay a fine of $90,000 for employing at least one unregistered investment advisor in violation of the law.
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Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.