Broker George Louis McCaffrey, a general securities representative has been suspended by the Financial Industry Regulatory Authority (FINRA) on allegations of engaging in unauthorized private securities transaction in violation of FINRA Rules 3280 and 2010, according to an investigation by investor rights attorney, Alan Rosca.

Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating alleged conduct related to the suspension of investment broker George McCaffrey by FINRA. As at the time of this investigation, George McCaffrey is not registered with any FINRA member firm. He was previously employed by NTB Financial Corporation from 1989 till 2017.

George McCaffrey Suspended by FINRA 

According to his FINRA Brokercheck page, George McCaffrey allegedly participated in 22 undisclosed private securities transactions without the approval of his firm which is a violation of the FINRA rules. According to the reports, the transactions allegedly involved nine investors including a firm customer who purchased debt and equity securities amounting to $1,775,000. Allegedly, McCaffrey introduced the nine investors to representative of a greenhouse building and leasing company for possible investments into the company. The investors allegedly invested the sum of $1,775,000 in promissory notes of the company and preferred stocks of an affiliate company. In executing the transaction, McCaffrey allegedly received $124,250 in commission through an entity controlled by his wife. Upon further investigation, FINRA discovered that the transactions were not executed with the approval of the firm and McCaffrey incorrectly stated on the firm’s annual compliance questionnaire that he had not engaged in private securities transactions.

In settling the allegations, George McCaffrey, without admitting to or denying the findings, signed the Acceptance Waiver and Consent order issued by the FINRA which suspended him for 18 months in all capacities and also sanctioned him for Civil and Administrative penalties to the tune of $15,000.

George McCaffrey Subject of Previous Regulatory Sanctions and Customer Disputes

According to a customer dispute allegation brought against him in 1991, George McCaffrey was alleged to committing 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 1990. He was also alleged to have been negligent in failing to give customer correct information on proposed merger of Luxor and Northern Gold. The allegation was settled to the tune of $26,500.

At the time of writing this report a customer dispute is pending against George McCaffrey on the allegation of lending money to a private company in 2004 and 2005 from his IRA brokerage account at Trustar Retirement Services as sub-trustee. NTB alleges to have no record of the transaction.

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.

Securities Lawyer Investigating

The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating George McCaffrey’s alleged participation in unauthorized private securities transactions. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of George McCaffrey’s participation in unauthorized private securities transactions may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.