George Louis McCaffrey III of Englewood Colorado a stockbroker formerly registered with NTB Financial Corporation has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings of him selling away and giving false information to FINRA during a period that he was investigated for engaging in private securities transactions. Letter of Acceptance Waiver and Consent No. 2019064024001 (June 25, 2021).
On September 10, 2018, McCaffrey was fined $15,000.00 and suspended for 18 months from associating with any FINRA member based on findings that he violated FINRA Rules 2010 and 3280 by selling away. McCaffrey took part in 22 securities transactions involving nine investors who made purchases. An NTB Financial Corporation customer was among those investors. The regulator noted that $1,775,000.00 in equity and debt securities had been purchased by investors through these private securities transactions. The investments concerned promissory notes in a greenhouse building and leasing company.
McCaffrey was asked by FINRA during its investigation to identify all outside business activities that he was involved with while registered with NTB Financial Corporation. The stockbroker was supposed to identify the outside business purpose, the activities involved, and any capital formation or capital raising transactions. McCaffrey relayed information to FINRA regarding the 22 transactions but nothing more.
In the most recent disciplinary action against McCaffrey, FINRA noted that there were two additional investors who collectively purchased securities through a business in which McCaffrey was associated. This was McCaffrey’s outside business activity. There was no attempt made by McCaffrey to get authorization from NTB to take part in those securities transactions. The regulator also noted an additional $100,000.00 transaction that McCaffrey took part in which involved a different company. The securities broker dealer never received McCaffrey’s request to take part in that transaction.
The stockbroker’s selling away activities involving $270,000.00 in securities transactions were not disclosed to the securities broker dealer or to FINRA when it learned of his other securities transactions. McCaffrey violated FINRA Rules 2010 and 3280 for selling away, and Rules 2010 and 8210 for giving false information to the regulator in the investigation.
McCaffrey has been identified in three customer initiated investment related disputes concerning accusations of his harmful activities while registered with Neidiger Tucker Bruner Inc. (also known as NTB Financial Corp). FINRA Public Disclosure reveals that a customer initiated investment related complaint regarding McCaffrey’s activities was settled for $26,500.00 in damages supported by allegations that the customer had been defrauded and that McCaffrey made misrepresentations to them regarding over-the-counter equities transactions at Neidiger Tucker Bruner. According to the complaint, the customer was not provided with important investment information.
On May 14, 2019, a customer filed an investment related complaint involving McCaffrey’s conduct in which the customer requested $290,000.00 in damages based upon accusations that McCaffrey inappropriately recommended that the customer use their IRA funds for purposes of lending money to a private company.
McCaffrey is also referenced in a customer initiated investment related FINRA securities arbitration claim where the customer sought $220,000.00 in damages founded on allegations that private securities transactions had been arranged by McCaffrey involving an unregistered company which resulted in the customer’s purchases of exchange notes, warrants and unregistered stock. FINRA Arbitration No. 21-00885 (Apr. 19, 2021).
McCaffrey’s registration with NTB Financial Corporation was terminated on October 30, 2017.