Richard Grant Cody of Spring Lake New Jersey on November 9, 2018, pleaded guilty to one count of investment adviser fraud; conduct violative of 15 U.S.C. § 80b-6 and 80b-17. United States v. Richard G. Cody Case No. 1:17-cr-10291-FDS. Cody lied to customers about the security of their retirement savings and had provided customers with bogus account statements to hide the fact that their savings had been nearly depleted. The stockbroker has also been barred by SEC from being a stockbroker or investment adviser representative according to an Order which makes reference to Cody pleading guilty to defrauding investors and which reveals that he lied to SEC. In the Matter of Richard G. Cody Administrative Proceeding File No. 3-19113 (Mar. 19, 2019).
One of his prior employers, IFS Securities settled a customer initiated investment related arbitration claim for $115,000.00 based upon allegations of unsuitable investment recommendations and excessive trades which caused the customer to experience losses on corporate debt and asset-backed debt products. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-00004 (Feb. 3, 2020). According to Public Disclosure in this case it was alleged that the value of the account decreased at least 33%from an initial value of $377,000 while maintained at Leerink Swann & Co. between December 2001 and May 2005..
FINRA Public Disclosure reveals that Cody is referenced in twenty-three more customer initiated investment related disputes containing allegations of his wrongdoing while associated with securities broker dealers including SVB Leerink LLC, Westminster Financial Services Inc., and Concorde Investment Services LLC. On August 2, 2018, a customer initiated investment related arbitration claim involving Cody’s conduct was settled for $165,000.00 in damages based upon allegations that the customer of Westminster and Concorde had been defrauded. FINRA Arbitration No. 17-02079 (Aug. 23, 2017). From 2011 and 2016, trades were allegedly effected by Cody without authorization and the customer’s individual retirement account had been mismanaged.
Cody is the subject of a customer initiated investment related arbitration claim which was settled for $62,500.00 in damages based upon allegations of mismanagement and fraud by Cody during the time that he was associated with Westminster and Concorde. FINRA Arbitration No. 17-02079 (Nov. 6, 2018). Another customer initiated investment related arbitration claim involving Cody’s conduct was settled on November 12, 2018 for $56,000.00 in damages based upon allegations of floating rate notes transactions being executed in the Westminster and Concorde customer’s account by Cody without authorization. FINRA Arbitration No. 17-02312 (Nov. 12, 2018). The stockbroker is also the subject of a customer initiated investment related arbitration complaint which was settled on October 3, 2019 to resolve allegations of forgery and misrepresentation by Cody.
Cody has been sanctioned seven times by securities regulators. He has been barred from associating with any FINRA member in any capacity based upon consenting to findings that he provided the regulator with false information during the time that he was investigated and that he neglected to comply with FINRA’s investigation into whether he violated the terms of a prior suspension by engaging in securities business with customers. Department of Enforcement v. Richard G. Cody Disciplinary Proceeding No. 2016048538901 (Sept. 5, 2017). On December 12, 2017, the stockbroker was stripped of his stockbroker license and investment adviser representative license by New Jersey Bureau of Securities based on him being barred by FINRA.
On November 9, 2018, Cody pleaded guilty to one count of investment adviser fraud; conduct violative of 15 U.S.C. § 80b-6 and 80b-17. United States v. Richard G. Cody Case No. 1:17-cr-10291-FDS. Cody lied to customers about the security of their retirement savings and had provided customers with bogus account statements to hide the fact that their savings had been nearly depleted. The stockbroker has also been barred by SEC from being a stockbroker or investment adviser representative according to an Order which makes reference to Cody pleading guilty to defrauding investors and which reveals that he lied to SEC. In the Matter of Richard G. Cody Administrative Proceeding File No. 3-19113 (Mar. 19, 2019).
