The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker George McCaffrey III. According to his publicly available FINRA BrokerCheck report, George McCaffrey III has been the subject of customer disputes and a FINRA sanction.

George McCaffrey III was a Colorado based securities broker. He worked in the securities industry for thirty-seven years. During his career, he was registered with eight different securities firms. He is not currently working as a registered securities broker in any fashion.

His Registrations

  • SFC Equities (1978)
  • Peavey Securities (1980)
  • S.W. Devanney & Company (1980-1981)
  • Securities Clearing of Colorado (1982-1983)
  • E.J. Pittock & Co. (1983-1984)
  • J.W. Grant & Associates (1984-1989)
  • First Eastern Securities Corporation (1985-1986)
  • NTB Financial Corporation (1989-2017)

The Allegations

  • In March 1991, a customer alleged that George McCaffrey III made material misrepresentations and engaged in fraud. This case was settled for $26,500 in damages.
  • George McCaffrey III was officially sanctioned by FINRA in September 2018. The findings in this matter state that he allegedly took part in twenty-two undisclosed private securities transactions. The findings state that nine investors, one of which was a customer of his member firm, purchased $1,775,000 in debt and equity securities. The transactions were not executed though the firm and McCaffrey allegedly did not give prior written notice that he would be executing the transactions. Due to these allegations, he was forced to pay $15,000 in fines, $124,250 in disgorgement, and was suspended from acting as a securities broker in any fashion for a period of eighteen months.
  • In May 2019, a customer alleged that they lent money to a private company from their retirement account on George McCaffrey III’s recommendation. This case is currently pending. The customer is seeking $290,000 in damages.

What Does This Mean?

Brokers are not allowed to engage in private business ventures without first disclosing their involvement to their member firm. This is because it can often create significant conflicts of interest for the securities broker. Brokers like George McCaffrey III might begin recommending privately traded securities to customers because they have a financial stake in said security, because they are receiving cash kickbacks from a third party, or simply because of the incredibly high commission they receive once the transaction is executed. This conflict of interest can lead to brokers recommending private investments to customers even if they are not financially suited for them. It is the responsibility of the securities firm to determine if a conflict of interest might exist or if a broker’s actions might harm a member firm customer in any way. They are not absolved from liability simply because their registered broker fails to disclose their intent to engage in these activities. Firms are required to have the necessary procedures in place designed to supervise brokers and prevent them from engaging in any unauthorized activities.

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 George McCaffrey III, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.