The SEC is investigating a crime that goes back more than a decade
In December of 2016, the Securities and Exchange Commission (SEC) filed a complaint in Boston’s federal court against broker Richard Cody. The complaint charged Cody with defrauding at least three of his retired clients. He was registered as a broker with Concorde Investment Services, but conducted business as Boston Investment Partners.
The SEC alleges that over a 12-year span, Cody concealed from those clients that their retirement accounts had suffered losses, and that he led them to believe that their investments were maintaining value and that they were living off income from them.
By 2014, two of those accounts were virtually empty. In order to keep up the pretense, each month Cody allegedly made wire transfers to their bank accounts. In addition, he is reported to have sent his clients doctored tax forms.
The SEC says that as the result of his actions, Cody violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC is in the process of obtaining a court-ordered asset freeze against Cody, as well as his company, Boston Investment Partners.
Over 18 years, Cody worked for seven different firms, beginning with Merrill Lynch, Pierce, Fenner & Smith Incorporated in New York, NY, in 1997. He then moved onto Salomon Smith Barney Inc., also in NYC. From December of 2001 to March of 2010, Cody worked for two Boston firms: Leerink Swan & Company and Gunnallen Financial, Inc. Rounding out his employment, Cody was a member of Westminster Financial Securities, Inc. in Providence, RI; and then two firms in Spring Lake, NJ: Concorde Investment Services, LLC and IFS Securities.
Since 2005, there had been several customer complaints against Cody, including making unsuitable investments and a failure to supervise, which resulted in thousands of dollars in damages being awarded and a year-long suspension.
However, it’s the latest – and more serious – charge of elder fraud that could be the most damaging to Cody, and ultimately end his career as a broker.
The Financial Industry Regulatory Authority’s (FINRA) BrokerCheck report has more information about the employment history of Cody and the many allegations against him.
If Cody handled your investments, it would be a good idea to take a close look at your accounts. And if you suspect wrong-doing, contact the Silver Law Group. Scott Silver is the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and our attorneys routinely represent elderly investors and their families. We have extensive experience pursuing claims in arbitrations conducted by the Financial Industry Regulatory Authority (FINRA) and in federal court for violations of various states’ laws against elder abuse.
The Silver Law Group is a contingency-based firm. This means that we don’t get paid unless you do. Give us a call at 954-755-4799 or just fill out our online form for a free consultation.