Were you the victim of NTB Financial Corp. broker George McCaffrey III (CRD# 847377) regarding private placement investment losses? George McCaffrey III was registered with NTB Financial Corporation in Englewood, Colorado from 1989 to 2017.
In June 2021, FINRA barred George McCaffrey III after he “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, George McCaffrey III 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.”
In September 2018, FINRA sanctioned George McCaffrey III to pay a $15,000 civil and administrative penalty and fine, $124,250 in disgorgement, and was suspended for 18 months after he “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.”
In 1983, George McCaffrey III was terminated from Securities Clearing of Colorado, Inc. regarding “n/a alleged arrangements that I had with a customer, Richard Oliver.”
In 1977, George McCaffrey III faced a regulatory action by the Commodity Futures Trade Commission and was sanctioned to pay a $2,500 monetary fine.
George McCaffrey III Customer Complaints
George McCaffrey III has been the subject of three customer complaints between 2018 and 2021, one of which was closed without action, according to his CRD report. The most recent complaint is regarding:
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 is seeking $220,000 in damages and the case is currently pending. The complaint was regarding an unregistered stock, warrants, and exchange notes and took place while George McCaffrey III was registered with NTB Financial Corp.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, NTB Financial Corp. may be liable for investment or other losses suffered by George McCaffrey III’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.