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Financial advisor George McCaffrey customer complaints

Financial Advisor, George McCaffrey, Barred By FINRA For Selling Away

The Wolper Law Firm is currently investigating claims against George McCaffrey, a former Financial Advisor at NTB Financial Corp. in Englewood, Colorado.  George McCaffrey has been in the securities industry since the 1970s and has worked for NTB Financial Corp. since the 1980s.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on September 10, 2018, FINRA sanctioned George McCaffrey, barring him from the securities industry for a period of 18 months.  As part of regulatory settlement, FINRA made the following findings:

“Without admitting to or denying the findings, McCaffrey consented to the sanctions and to the entry of findings that without first providing notice to his member firm, he participated in 22 undisclosed private securities transactions in which nine investors, including one firm customer, purchased $1,775,000 in debt and equity securities. The findings stated that McCaffrey introduced the nine individuals to representatives of a greenhouse building and leasing company so they could invest in the company. The findings also stated that he reviewed and edited documents relating to the investments, forwarded investment-related documents to the customers, and communicated with the customers about their investments. Those investors purchased $1,775,000 in promissory notes of the greenhouse building and leasing company and preferred stock in one of the company’s affiliates. The findings also included that in connection with these transactions, the company paid $124,250 in commissions to an entity controlled by McCaffrey’s wife. FINRA found that the transactions were not executed through the firm , and McCaffrey did not give the firm prior written notice that he would be participating in them. FINRA also found that McCaffrey incorrectly indicated on the firm’s annual compliance questionnaire that he had not participated in any private securities transactions.

For a full copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017056104701%20George%20L.%20McCaffrey%20III%20CRD%20847377%20AWC%20jm.pdf

Participation in outside business activities often leads to “selling away,” which is when financial advisors sell products and securities to clients that are not approved by the firm.   The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

If you or someone you know was a customer of George McCaffrey and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at mwolper@wolperlawfirm.com to discuss your specific situation and the legal options available.  The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.

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.

FINRA Barred Broker George McCaffrey for Alleged Selling Away

George McCaffrey (CRD#: 847377) is a previously registered Broker. He was most recently registered with NTB Financial Corp.

Broker’s Background

He entered the securities industry in 1978 and previously worked for NTB Financial Corporation; J.W. Gant & Associates, Inc.; First Eastern Securities Corporation; E.J. Pittock & Co., Inc.; Securities Clearning of Colorado, Inc.; S.W. Devanney & Co., Inc.; Peavey Securities, Inc.; and SFC Equities, 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 2021, FINRA barred George McCaffrey for allegedly selling away.

The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

According to the FINRA sanction, “Without admitting or denying the findings, McCaffrey consented to the sanction and to the entry of findings that he provided false information to FINRA during a prior investigation. The findings stated that previously, McCaffrey consented to findings that he participated in undisclosed private securities transactions in which investors, including a member firm customer, purchased debt and equity securities. During the course of the investigation, FINRA issued a request to McCaffrey, asking that he provide a list of all outside business activities in which he engaged away from his firm. McCaffrey did not identify any other private securities transactions in which he had participated other than the transactions which formed the basis of his prior AWC. The findings also stated that McCaffrey participated in additional private securities transactions, without prior written disclosure to, and approval from, his firm. McCaffrey participated in private securities transactions in which additional individuals, who were not firm customers, purchased securities issued by the company that was the subject of his prior AWC. Additionally, contrary to his representations made in connection with his prior disciplinary action, McCaffrey participated in another private securities transaction with an individual, who was not a firm customer, involving a separate, but related company.” George McCaffrey was barred indefinitely from all capacities indefinitely beginning June 25, 2021. For a copy of the disciplinary action, click here.

In addition, George McCaffrey has been the subject of four customer complaints, including two that remain pending, an employment disclosure and prior regulatory disclosure in 2018:

  • September 2021 — “Claimants assert they lent money to a private company and Mr. McCaffrey made false representations concerning the company. The private company ultimately defaulted on its obligations. NTB Financial had no relationship with the private company and has no record of doing any business with or for the private company, including making recommendations of its promissory notes.” Damages of $1.7M are requested, and the customer dispute is pending.
  • April 2021 — “Mr. McCaffrey is alleged to have solicited private securities transaction investments in an unregistered company in approximately 2015 (dates unspecified), and NTB Financial supervision failed to detect his outside activity.” The customer dispute is pending. Damages of $220,000 are requested.
  • May 2019 — “[REDACTED] lent money to a private company in 2004 and 2005 from his IRA brokerage account at Trustar Retirement Services as sub-trustee. The complaint asserts Mr. McCaffrey recommended lending money to the private company. NTB has no record of a recommendation being made.” The customer dispute is pending, and damages of $290,000 are requested.
  • September 2018 — “Without admitting to or denying the findings, McCaffrey consented to the sanctions and to the entry of findings that without first providing notice to his member firm, he participated in 22 undisclosed private securities transactions in which nine investors, including one firm customer, purchased $1,775,000 in debt and equity securities. The findings stated that McCaffrey introduced the nine individuals to representatives of a greenhouse building and leasing company so they could invest in the company. The findings also stated that he reviewed and edited documents relating to the investments, forwarded investment-related documents to the customers, and communicated with the customers about their investments. Those investors purchased $1,775,000 in promissory notes of the greenhouse building and leasing company and preferred stock in one of the company’s affiliates. The findings also included that in connection with these transactions, the company paid $124,250 in commissions to an entity controlled by McCaffrey’s wife. FINRA found that the transactions were not executed through the firm , and McCaffrey did not give the firm prior written notice that he would be participating in them. FINRA also found that McCaffrey incorrectly indicated on an the firm’s annual compliance questionnaire that he had not participated in any private securities transactions.” George McCaffrey was fined $15,000, ordered to disgorge $124,250, and suspended from all capacities for 18 months beginning September 17, 2018 and ending March 16, 2020. For a copy of the disciplinary action, click here.
  • March 1991 — “MISREPRESENTATION AND FRAUD IN FAILING TO ADVISE [CUSTOMER] WHO WAS THE SETTLER OF HIS AGENCY BUYS OF LUXOR FOR $129,171.00 AND NORTHERN GOLD OF $14,828.50 IN MAY AND JUNE OF 1990. NEGLIGENT IN FAILING TO GIVE [CUSTOMER] CORRECT INFORMATION ON PROPOSED MERGER OF LUXOR AND NORTHERN GOLD.” The customer dispute was settled for $26,500.
  • January 1983 — “N/A ALLEGED ARRANGEMENTS THAT I HAD WITH A CUSTOMER, RICHARD OLIVER.” George McCaffrey was discharged by Securities Clearing of Colorado, Inc.
  • July 1977 — A regulatory action was initiated by the Commodity Futures Trade Commission, including a cease and desist/injunction. George McCaffrey was fined $2,500 and sanctioned with revocation/expulsion/denial.

For a copy of George McCaffrey’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

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.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]