George Louis McCaffrey III of Englewood Colorado a stockbroker formerly registered with NTB Financial Corporation has been fined $15,000.00 and suspended for eighteen months from associating with any FINRA member in any capacity based upon consenting to findings that he engaged in private securities transactions. Letter of Acceptance Waiver and Consent No. 2017056104701 (Sept. 10, 2018).
According to the AWC, between January 2016 and August of 2017, McCaffrey arranged for one customer of the firm and eight non-firm customers to invest in a greenhouse building and leasing company The AWC stated that McCaffrey was responsible for reviewing and editing the investment-related documentation. McCaffrey apparently facilitated the completion and submission of those documents, and corresponded with investors concerning the status of their investment transactions.
The AWC stated that twenty-two transactions were executed in total, where customers laid out $1,775,000.00 to receive the greenhouse building and leasing company’s promissory notes in return for the stock in the leasing company’s affiliated companies. The AWC stated that in return for McCaffrey’s efforts, a total of $124,250.00 in commissions had been paid to a company that McCaffrey’s spouse controlled.
Evidently, those transactions were effected by McCaffrey outside of the firm’s auspices, and the firm was never provided any information about McCaffrey’s role in the transactions. Moreover, the firm had McCaffrey complete compliance questionnaires which prompted McCaffrey to disclose whether he engaged in any securities transactions away from the firm. McCaffrey apparently falsely indicated that he had not participated in private securities transactions. FINRA found that McCaffrey’s conduct was violative of FINRA Rules 2010 and 3280.
FINRA Public Disclosure confirms that a customer initiated investment related complaint concerning McCaffrey’s conduct was resolved for $26,500.00 in damages founded on allegations that when McCaffrey was associated with Neidiger, Tucker, Bruner, Inc., he made misrepresentations and defrauded the customer in reference to the customer’s over-the-counter equities purchases.
McCaffrey’s registration with NTB Financial Corporation was terminated as of October 30, 2017.
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