Were You A Victim of Former Cadaret, Grant & Co., Inc. Financial Advisor Charles Deremo?
Posted on Monday, July 17th, 2017 at 5:17 pm
Erez Law is currently investigating former Cadaret, Grant & Co., Inc. financial advisor Charles Deremo (CRD# 713036) regarding unsuitable investment recommendations. Deremo has been registered with Cadaret, Grant & Co., Inc. in Eagan, Minnesota from 1995 to 2016. Deremo is currently not registered with any brokerage firm.
In January 2017, Deremo was fined $5,000 and suspended from association with any FINRA member in any capacity for 10 business days and ordered to pay $4,917.96, plus interest, in partial restitution to a customer. The firm and Deremo consented to the sanction that the firm failed to enforce its WSPs and conduct a suitability review of Deremo’s investment recommendations for a customer. Additionally, “The findings also stated that Deremo employed a recommended strategy for a customer, which was unsuitable for the customer given his investment objective, risk tolerance, income needs and age. Deremo recommended that the customer exchange his existing variable annuity for a new variable annuity issued by another entity so that Deremo could execute a strategy wherein he would, at his discretion, move the full account balance between a precious metals fund subaccount (Precious Metals Fund) and a money market subaccount based on market factors monitored by Deremo. Specifically, Deremo planned to move the customer’s funds back and forth between the two subaccounts based on his monitoring of certain factors in the precious metals market, the most significant factor being the price of gold (the Precious Metals Strategy).”
The complaint further alleged that, “The customer’s investment in the Precious Metals Strategy represented nearly half of the customer’s disclosed net worth of $268,000. The Precious Metals Strategy was not suitable because the activity involved a high percentage of the customer’s net worth, and all of the customer’s investible (sp) assets with Deremo were traded using this strategy.”
Deremo has been the subject of four customer complaints between 1994 and 2015, according to his CRD report:
August 2015. “[customer] took issue with an investment strategy in the sub-accounts of a variable annuity. [customer] engaged in this strategy between October 2005 and May 2014, but alleges that at some point this strategy became unsuitable in light of her age and investment objectives. Charles Deremo has denied [customer’s] allegations and notes that she pursued the investment strategy at issue for close to ten years without complaint.” The customer sought $84,378 in damages and the case was settled for $30,000.
June 2014. “Customer alleges unsuitability and breach of duty.” The customer sought $250,000 in damages and the case was settled for $100,000.
November 2013. “Alleged unsuitable investment recommendations.”
November 1994. “Unsuitable investments in precious metal based variable annuity and mutual fund.” The customer sought $50,001 in damages and the case was settled for $32,000.
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, Cadaret, Grant & Co., Inc. may be liable for investment or other losses suffered by Deremo’s customers.
Erez Law represents investors in the United States for claims against former Cadaret, Grant & Co., Inc. financial advisor Charles Deremo regarding unsuitable investment recommendations. If you were a client of Cadaret, Grant & Co., Inc. or another firm, and 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.