The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Jeffrey Cadan. According to his publicly available FINRA BrokerCheck report, Jeffrey Cadan has been the subject of multiple customer disputes.

Jeffrey Cadan was a New York-based securities broker. He worked in the securities industry for eighteen years. During his career, he was registered with six different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Datek Securities Corp. (1996-1998)
  • Sanford C. Bernstein & Co. (1999-2000)
  • Mellon Financial Markets (2001-2003)
  • MBSC, LLC (2003-2005)
  • UBS Financial Services (2005-2011)
  • Morgan Stanley (2011-2017)

The Allegations

  • In February 2009, a customer alleged that Jeffrey Cadan made unsuitable investment recommendations and failed to diversify her portfolio. This case was settled for $117,000 in damages.
  • In August 2009, a customer alleged that his accounts managed by Jeffrey Cadan had an over-concentration in financial sector securities that resulted in losses. This case was settled for $400,000 in damages.
  • In November 2011, customers alleged that Jeffrey Cadan committed securities fraud, committed common law fraud, made material misrepresentations, recommended unsuitable investments, breached his fiduciary duty, failed to disclose a material conflict of interest, managed their account negligently, and violated federal and state securities laws and FINRA rules regarding the purchase of structured products issued by Lehman Brothers. This case was settled for $155,000 in damages.
  • In December 2011, a customer alleged that Jeffrey Cadan committed securities fraud, committed common law fraud, made material misrepresentations, recommended unsuitable investments, breached his fiduciary duty, failed to disclose a material conflict of interest, and managed their account negligently. This case was settled for $225,000 in damages.
  • In January 2012, a customer alleged that Jeffrey Cadan breached his fiduciary duty, made material misrepresentations and omissions, over-concentrated their account, breached contract, failed to disclose a material conflict of interest, committed common law fraud, managed their account negligently, and engaged in fraudulent inducement. This case was settled for $235,000 in damages.
  • In April 2012, another customer alleged that Jeffrey Cadan committed securities fraud. They also alleged he committed common law fraud, made material misrepresentations, breached his fiduciary duty, breached contract, failed to disclose a material conflict of interest, and managed their account negligently. This case was settled for $225,000 in damages.
  • In May 2012, a customer alleged that Jeffrey Cadan breached his fiduciary duty, acted negligently, committed fraud, engaged in fraudulent inducement, made material misrepresentations and omissions, and recommended unsuitable investments. This case was settled for $345,500 in damages.
  • In June 2012, customers alleged that Jeffrey Cadan recommended unsuitable investments and made material misrepresentations and omissions in connection with the purchase of structured notes. This case was settled for $170,000 in damages.
  • In October 2017, customers alleged that Jeffrey Cadan traded their accounts excessively. This case was settled for $1.2 million in damages.

Excessive Trading

Excessive trading occurs when a securities broker executes trades in an investor’s account more frequently than is suitable. This act can be detrimental to investors due to the trading losses and fees that it causes them to incur. Often times, this act is a direct result of a broker trying to obtain a greater number of commissions for themself, as brokers receive additional commissions every time they execute a trade on their investor’s behalf. Doing this intentionally is a fraudulent act known as churning.

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 Jeffrey Cadan, 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.