- July 31, 2023
- Carlton & Associates
Shawn Spellacy (CRD#: 2275119) is a registered Broker and Investment Adviser at Calton & Associates, Inc., in Fair Oaks, CA.
He entered the securities industry in 1993 and previously worked for Fortis Investors, Inc.; and G.R. Phelps & Co., 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 June 2023, a customer dispute was filed against Shawn Spellacy. The allegation states, “Mr. [REDACTED] alleges that from 2018 and on, Mr. Shawn Spellacy made risky and unsuitable investments in his trust account resulting in losses of over $700,000.” The customer dispute is pending, and damages of $719,415 are requested.
In addition, Shawn Spellacy has been the subject of seven disclosures and customer disputes, including the following:
- June 2016 — A tax judgment/lien in the amount of $58,753.75 was imposed on Shawn Spellacy.
- May 2016 — A tax judgment/lien in the amount of $47,362.70 was imposed on Shawn Spellacy.
- April 2016 — A tax judgment/lien in the amount of $1,751.42 was imposed on Shawn Spellacy.
- November 2015 — A tax judgment/lien in the amount of $431,420,34 was imposed on Shawn Spellacy.
- August 2012 — “MISREPRESENTATION & OMISSION, VIOLATION OF CALIFORNIA CORP. SECURITIES LAW, BREACH OF FIDUCIARY DUTY, VIOLATION OF NASD CONDUCT RULES. ACTIVITY OCCURRED IN 2011.” The customer dispute was settled for $99,999.
- June 2011 — A tax judgment/lien in the amount of $20,433 was imposed on Shawn Spellacy.
- January 2009 — “MISREPRESENTATION, BREACH OF FIDUCIARY DUTY, DUE DILIGENCE.” The customer dispute was settled for $50,001.
For a copy of Shawn Spellacy’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 firstname.lastname@example.org.