FINRA barred former Caldwell International Securities Corp. broker Rasheed "Richard" Aree Adams for unsuitable excessive trading and churning in customer accounts and in a manner inconsistent with the customer's investment objectives. The AWC states Adams acted with requisite scienter—that he knew or reasonably should have known of his wrongdoing.
According to the findings, Adams excessively and unsuitable traded and churned two customer accounts from 2013 to 2014, resulting in a turnover rates in the two accounts of 16.14, and 19.16 respectively and cost-to-equity ratios of 70.99% and 91.96% respectively.
In terms of tangible damages, FINRA found that Adams' improper trading activity resulted in $37,000 in customer losses while generating commissions of over $57,000.
FINRA also discovered that Adams willfully failed to disclose unsatisfied judgments and liens on previous actions, and failed to provide requested documents related to the present excessive trading and churning case.
Adams' BrokerCheck report indicates 20 disclosures, the majority of which are customer disputes and judgment/liens, including a settled case that featured allegations of suitability, omissions and misrepresentations of material fact, unauthorized trading, churning, negligence, breach of contract, breach of fiduciary duty, and common law fraud.
One such complaint was from a customer alleging that Adams engaged in unauthorized trading activity in 2012, but the dispute was closed when the trade proved profitable for the customer, who elected not to pursue the dispute.
If you have invested with ex-Caldwell International Securities Corp. broker Rasheed "Richard" Aree Adams or with any broker or financial adviser who has excessively traded or churned your account, resulting in damages or exaggerated commissions or fees that have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.