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Stockbroker Chadwick Collins Has Five Customer Complaints

Chadwick Collins (CRD#: 2597677)is a dually registered Broker and Investment Advisor at Kestra Investment Services, LLC and Kestra Private Wealth Services, LLC in Carlsbad, CA.

Broker’s Background

He entered the securities industry in 1997 and previously worked for WellsFargo Clearing Services, LLC, and Merrill Lynch, Pierce, Fenner & Smith, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2021, a customer dispute was filed against Chadwick Collins. The allegation states, “Client alleges FP was neglectful and reckless with the management of their portfolio from 2017 until 2021.” Damages of $2.3M are requested, and the customer dispute is pending.

In addition, Chadwick Collins has been the subject of four customer complaints, including two that remain pending, and an employment termination:

  • November 2021 – “Client alleges account losses in IRA and Trust due to lack of fiduciary responsibility and margin activity.” Damages of $1M are requested, and the customer dispute is pending.
  • June 2021 – “Claimant alleges that Representative Collins made unsuitable recommendations and investments that were inconsistent with his investment profile. Additionally, Claimant alleges that Representative Collins recommended Claimant replace employer sponsored term life policy with IUL policy without providing material information, including the true cost of the premiums. Further, Claimant alleges that Representative Collins recommended that Claimant secure loan proceeds and then subsequently invested said loan proceeds in various investments. Claimant alleges that due to Representative Collin’s recommendations and investment practices he incurred damages.” Damages of $600,000 are requested, and the customer dispute is pending.
  • March 2016 – “Client alleged commissions were not disclosed in advance of transactions. (12/29/2015-3/18/2016).” The customer dispute was settled for $6,559.31.
  • June 2013 – “THE CUSTOMER ALLEGES EXCESSIVE TRADING AND UNSUITABLE INVESTMENT RECOMMENDATIONS FROM 2006 TO 2009.” The customer dispute was settled for $150,000.
  • June 2009 – “MR. COLLINS WAS TERMINATED ON JUNE 8,2009 FOR VIOLATING THE FIRM’S POLICY REGARDING SHORT-TERM MUTUAL FUND TRADING AND HAVING CHECKS IN HIS PERSONAL ACCOUNT RETURNED FOR INSUFFICIENT FUNDS. THIS CONDUCT DID NOT INVOLVE CUSTOMER ACCOUNTS.” Chadwick Collins was discharged from Merrill Lynch, Pierce, Fenner & Smith, Inc.
  • April 1995 – “ON 5/5/96 MR. COLLINS WAS CONVICTED OF TRESPASSING, A MISDEMEANOR. THE DISPOSITION INDICATES THAT, ON 12/2/96, THE CONVICTION FOR TRESPASSING WAS SET ASIDE AND A PLEA OF NOT GUILTY ENTERED. THE COMPLAINT WAS DISMISSED.”

For a copy of Chadwick Collins’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

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