FINRA Permanently Bars NY Broker Rasheed Adams After Allegations of Churning

Excessive trading leads to $57K in commissions and $37K in losses for investors, among other allegations

In August of 2015, FINRA permanently banned New York financial advisor Rasheed “Richard” Adams from associating or engaging with any firm associated with FINRA after allegations of excessive trading were filed. Adams also failed to provide required FINRA information and paperwork related to these allegations and his investment activity. Adams allegedly gained a commission of approximately $57,000, while his customers lost approximately $37,000.

According to the FINRA complaint, Mr. Adams worked with Caldwell International Securities between 2011 and 2015, which is when these churning activities were alleged to have occurred. Previously, he was registered with PHD Capital (2010-2011) and E1 Asset Management Inc. (2002-2010). He is not currently registered with any FINRA member firm.

How does churning work?

Churning is the excessive trading of a client’s funds by a broker for the purpose of generating large commissions. This practice is illegal and deemed unethical by the both the SEC and FINRA.

For churning to take place, an investment broker must have control over investment dcisions related to an account and complete purchases and sales that are not in line with a customer’s investment goals and objectives.

This practice is unfair to customers and preys on those who trust their investors to make transactions with their best interest in mind. Churning can result in significant financial losses for the client while the broker enjoys large commissions.

Silver Law Group: Helping victims recover after investment and securities fraud

If you think you may be a victim of Adams’ misconduct or are concerned that your investment broker is misusing the funds that you are investing, waste no time getting to the bottom of the situation. Silver Law Group has handled thousands of investor fraud and securities arbitration cases and recovered lost money for thousands of investors wronged by their financial advisors.

Silver Law Group represents victims of these financial scams on a contingency fee basis, meaning that we do not get paid if money is not recovered. This is a promise that we make to each of our clients. If you would like more information or would like to discuss your case with an experienced securities arbitration attorney, call our legal team at 1-800-975-4345.