Rasheed Adams of New York, a prior representative for Caldwell International Securities, was barred from association with any FINRA-registered firm in all capacities after failing to provide FINRA with requested documentation in connection with allegations that Adams engaged in excessive and unsuitable churning and trading in customer accounts, while also failing to disclose a total of 12 unsatisfied judgments/liens on FINRA Form U4. Letter of Acceptance, Waiver and Consent No. 2015045911001 (Aug. 6th, 2015). Adams worked with Caldwell International Securities from 2011 to 2015.
Acceptance, Waiver and Consent from FINRA
According to the Acceptance, Waiver and Consent (“AWC”), from July 1st of 2013 – June 30 of 2014, Adams, while in control of two of her customers’ accounts, unsuitably and excessively churned and traded such accounts in a willful manner. The AWC indicates that such transactions were not consistent with the customers’ needs, financial status, and investment objectives. The AWC states that at least one customer suffered from a 19.16 turnover rate and cost/equity ratio of 91.96%. Adams’ activity, according to the AWC, resulted in investor losses of roughly $37,000, while his commissions totaled nearly $57,000. FINRA’s Department of Enforcement found that this conduct violated Section 10(b) of the Exchange Act, Rule 10b-5, and FINRA Rules 2010, 2020, and 2111.
Also according to the AWC, FINRA found that Adams’ act of not disclosing 12 judgments/liens was willful. According to the AWC, Adams’ knew of each unsatisfied judgment/lien when they were issued, and was additionally informed on August 13, 3013, via FINRA that his U4 had not contained such disclosures.
The AWC further indicates that on May 28, 2015, FINRA requested Adams provide information and documentation in connection with FINRA’s investigation into allegations that Adams was excessively churning and trading accounts. After multiple attempts by FINRA to obtain the documentation, as the AWC states, Adams ultimately informed staff that he would not be cooperating with the investigation at any point.
Failure to Cooperate
General securities representatives like Adams who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule.
Public Disclosure Records on Rasheed Adams
Public disclosure records via FINRA’s BrokerCheck reveal that Adams has been subject to 21 disclosures, 12 of which are the aforementioned civil and tax judgment/liens from November 13th of 2006 through October 28, 2014. He had been investigated by FINRA since January 21, 2014, for allegations of violating FINRA Rules 2111 and 2010, along with willfully violating Article V, Section 2. Public disclosure records also reveal that Adams has been subject to 5 customer disputes between June 10 of 2002 and June 1st of 2012, 4 of which have been closed (no action). Adams settled 1 customer dispute for $10,000 after Adams was alleged to have made misleading statements regarding stock performance, failed to disclose risk, failed to provide information related to commissions and fees, and engaged in inappropriate trading.
Guiliano Law Group
Investors suffering losses or damages caused by Rasheed Adams in connection with his aforementioned conduct may be able to recover their investment losses. Our practice is limited to the representation of investors in claims, for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.