Craig Lee Carson (also known as C. Chance Carson), of Colorado Springs, Colorado, a stockbroker registered with Intervest International Equities Corporation, is the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim in which the customer requested $701,211.32 in damages based upon allegations that Carson breached his fiduciary duties, committed fraud, committed violations of state and federal securities laws, was negligent, and breached a contract in connection with the sale of oil and gas investments, GWG L-Bonds, and GWG preferred stock during the period that Carson was associated with Intervest International Equities Corporation. FINRA Arbitration No. 22-01398 (March 1, 2023).
According to FINRA Public Disclosure, Carson is referenced in twenty (20) other customer initiated investment related disputes concerning Carson’s conduct while associated with securities broker dealers. On April 27, 2023, a customer initiated investment related FINRA securities arbitration claim involving Carson’s conduct was settled for $75,000.00 in damages based upon alleged unsuitable trading in GWG L-bonds and preferred stock when Carson was associated with Intervest International Equities Corp. FINRA Arbitration No. 22-00482.
On October 16, 2023, another customer initiated investment related FINRA securities arbitration claim involving Carson’s conduct was settled for $10,000.00 in damages based upon allegations that Carson violated federal securities laws, made misrepresentations and omissions of material fact, was negligent, breached his fiduciary duties, breached a contract, and made unsuitable recommendations in GWG L-bonds. FINRA Arbitration No. 22-01932.
Carson is also referenced in a securities arbitration claim in which the customer requested $6,100,000.00 in damages based upon allegations that Carson breached a contract, breached his fiduciary duties, and was negligent in connection with the sale of GWG L-bonds. FINRA Arbitration No. 22-01370 (June 28, 2022).
On November 9, 2023, a different securities arbitration claim involving Carson’s conduct was settled for $20,000.00 in damages based upon allegations that Carson violated state and federal securities acts, breached fiduciary duties, was negligent, committed fraud, breached a contract and failed to supervise certain representatives in connection with the sale of GWG L-bonds during the time that Carson was associated with Intervest International Equities Corporation. FINRA Arbitration No. 22-01658.
Carson was also referenced in a securities arbitration claim that was settled for $200,000.00 in damages based upon allegations that Carson was negligent, breached his fiduciary duties, and breached a contract in connection with the recommendation and sale of bonds. FINRA Arbitration No. 22-01370 (December 14, 2023).
On June 14, 2021, Carson was sanctioned by the United States Securities and Exchange Commission (SEC) because Carson and Intervest International Inc. breached fiduciary duties in connection with the recommendations and sales of UITs, mutual funds, and an interval fund. In the Matter of Intervest International Inc. and Craig L. Carson, Administrative Proceeding File No. 3-20366.
According to SEC, from April 14, 2016, to August 8, 2019, Carson recommended and facilitated the purchase of UIT units with transactional sales charges for Intervest advisory customer accounts that were eligible for identical units without such charges. Also, from May 19, 2016, to August 28, 2019, Carson recommended and facilitated the purchase of mutual fund shares with front-end sales loads for accounts that were eligible for load-waived Class A shares. These actions resulted in approximately $378,295.36 in avoidable transaction costs, which were collected as commissions by Intervest International Equities Corporation, Intervest’s subsidiary.
SEC found that 70 percent of these commissions were passed on to Carson. Carson and Intervest failed to disclose the conflicts of interest and breached their duty to seek the best execution for these transactions. Therefore, they violated Investment Advisers Act of 1940 Section 206(2).
Therefore, Carson was censured, fined $50,000.00, ordered to cease and desist from committing or causing any future violations of Investment Advisers Act, and required to pay disgorgement of $264,806.75.
Carson was associated with Intervest International Equities Corporation in Colorado Springs, Colorado, from December 2, 2003, to December 31, 2022.
