Charles Deremo—Unsuitable Recommendations
Charles Lee Deremo Allegedly Made Unsuitable Recommendations for an Elderly Customer
Charles Lee Deremo, between May 2011 and November 2013, allegedly made unsuitable recommendations for an elderly customer, known only as JL, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC) currently under review by attorneys Joe Peiffer and James Booker.
The AWC further alleges that Charles Lee Deremo also allegedly made plans to move said customer’s funds back-and-forth between two subaccounts, the AWC states.
Said plans were allegedly based on his monitoring of certain factors in the precious metals market, and the most significant factor was the price of gold, the AWC notes.
The AWC gives an account of Deremo’s and JL’s agreement.
Deremo allegedly had obtained discretion to trade the entire account balance of JL’s variable annuity account and transfer cash between a money market subaccount and a precious-metals mining subaccount, and was dependent on various factors monitored by Deremo, the AWC reports.
For example, between May 2011 and August 2012, Deremo allegedly moved JL’s variable annuity funds between the Precious Metals Fund and a money market subaccount about once every other month, and in August of 2012, Deremo allegedly moved variable annuity funds back into the Precious Metals Funs, the AWC notes.
Between April 15, 2013 and June 4, 2013, Deremo allegedly moved JL’s funds between the Precious Metals Fund and a money market subaccount three times.
The Peiffer Wolf securities lawyers are currently investigating Charles Deremo’s unsuitable recommendations.
Deremo Suspended and Fined $5,000 and Ordered to Pay Restitution of $4,917 by FINRA for Allegedly Recommending Unsuitable Investment Strategy
Charles Lee Deremo, between May 2011 and November 2013, allegedly put JL’s investment in a Precious Metals Strategy which represented nearly half of the customer’s disclosed net worth of $268,000, according to the aforementioned recent FINRA Letter of Acceptance, Waiver and Consent (AWC) presently being examined by attorneys Joe Peiffer and James Booker.
Hence, Deremo’ s recommendation of said strategy allegedly violated NASD and FINRA Rules, and therefore Deremo’s broker-dealer, Cadaret Grant also allegedly failed to enforce its written supervisory procedures, and thus also violated NASD and FINRA Rules, the AWC reports.
As a result, Deremo has been suspended and fined $5,000 and ordered to pay restitution of $4,917 by FINRA for allegedly recommending an unsuitable strategy, the AWC notes.
One should also note that, according to the AWC, Charles Lee Deremo neither admitted nor denied the FINRA findings.
Securities Lawyers Investigating
The Peiffer Wolf securities lawyers often represent investors who lose money as a result of unsuitable recommendations and are currently investigating. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Charles Deremo’s unsuitable recommendations may contact the securities lawyers at Peiffer Wolf, Joe Peiffer or James Booker, for a free no-obligation evaluation of their recovery options, at 504-523-2434 or via e-mail at email@example.com or firstname.lastname@example.org.