The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Richard Cody. According to his publicly available FINRA BrokerCheck report, Richard Cody has been the subject of numerous customer disputes.
Richard Cody was a New Jersey based securities broker. He worked in the securities industry for eighteen years. During his career, he was registered with seven different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Merrill Lynch (1997-2000)
- Salomon Smith Barney (2000-2001)
- Leerink Swann & Company (2001-2005)
- Gunnallen Financial (2005-2010)
- Westminster Financial Securities (2010-2013)
- Concorde Investment Services (2014-2016)
- IFS Securities (2016)
The Allegations
- In June 2005, a customer alleged that Richard Cody recommended unsuitable investments. This case was settled for $20,000 in damages.
- Also in June 2005, another customer alleged that Richard Cody recommended unsuitable investments. This case was settled for $56,000 in damages.
- In September 2005, customers alleged that Richard Cody executed unauthorized trades and placed them in unsuitable investments. This case was settled for $15,000 in damages.
- In September 2016, Richard Cody was discharged from his position at IFS Securities. This termination followed allegations that he engaged in selling away from the firm and forgery.
- In November 2016, customers alleged that Richard Cody forged documents, committed fraud, and handled their account negligently. The alleged transgressions taking place between 2011 and 2016. This case was settled for $125,000 in damages.
- In December 2016, a customer alleged that Richard Cody committed fraud, made material misrepresentations, and handled their account negligently. This case was settled for $190,000 in damages.
- In March 2017, a customer alleged that Richard Cody forged documents and misappropriated funds. This case is presently pending. The customer is seeking $150,000 in damages.
- Also in March 2017, customers alleged that Richard Cody handled their account negligently, breached his fiduciary duty, placed them in unsuitable securities, and churned their account. The alleged transgressions taking place between 2013 and 2016. This case was settled for $75,000 in damages.
- In August 2017, a customer alleged that Richard Cody committed fraud, engaged in deceitful behavior, and mismanaged their accounts. This case went to arbitration where the customer was awarded $286,096 in damages.
- Also in August 2017, a customer alleged that Richard Cody made unsuitable investment recommendations, committed fraud, made material misrepresentations, and engaged in deceitful behavior. This case was settled for $125,000 in damages.
- Also in August 2017, customers alleged that Richard Cody mismanaged their account, committed fraud, engaged in deceitful behavior, and executed unauthorized trades. The alleged transgressions taking place between 2011 and 2016. This case was settled for $165,000 in damages.
- In September 2017, a customer alleged that Richard Cody committed fraud and executed unauthorized trades. The alleged transgressions taking place between 2013 and 2016. This case was settled for $56,000 in damages.
- In November 2018, a customer alleged that Richard Cody made material misrepresentations and forged documents. This case is currently pending. The customer is seeking $245,000 in damages.
- In December 2018, a customer alleged that Richard Cody excessively traded their account and made unsuitable investment recommendations. This case is presently pending. The customer is seeking $150,000 in damages.
- According to findings released by the Securities and Exchange Commission in March 2019, Richard Cody pled guilty to one count of investment adviser fraud.
What Does This Mean?
Investment adviser fraud encompasses a large assortment of actions that securities brokers like Richard Cody will commit. Fraud occurs whenever a broker commits an act with an intent to deceive their customer. This can range from something complicated like an intense investment scheme occurring over years to a simple misrepresentation made in hopes that an investor will make a decision that will benefit the broker at their own expense. Fraudulent acts are the most blatant misuse of power committed by securities brokers. This type of behavior works toward the erosion of trust between brokers and investors and to a possible downfall of the broker/investor relationship altogether.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Richard Cody, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.
