New Jersey Advisor, Richard G. Cody Charged with Fraud
According to an SEC press release today, Richard G. Cody, New Jersey financial advisor, has been charged with defrauding his retired clients through his company, Boston Investment Partners, LLC.
The SEC’s complaint alleges that Cody defrauded at least three of his retired clients over a twelve-year period by concealing the fact that their retirement accounts had suffered extensive losses.
According to the SEC’s complaint, the clients did not know that their accounts had lost substantial value and were rapidly losing value. Cody allegedly concealed these losses by leading the clients to believe that their investments were maintaining steady value and that the clients were living off income from their investments.
By 2014, two of the retirees’ accounts had basically run out of money. Cody allegedly continued to hide that the retirees’ funds were gone by making wire transfers of monthly deposits to the retirees’ bank accounts and sending the clients false tax forms. The SEC alleges that these deceptive acts caused Cody’s clients to believe that their retirement savings were secure when, in fact, they were not.
The SEC’s complaint seeks disgorgement of ill-gotten gains plus interest and penalties as well as permanent injunctive relief. The SEC also seeks a court-ordered asset freeze against Cody and Boston Investment Partners, which was named as a relief defendant, a temporary restraining order, and a detailed accounting of Cody’s assets.
According to FINRA Broker Check, Cody was registered with IFS Securities in Spring Lake, NJ from 08/2016 – 09/2016, and he was registered with Concorde Investment Services in Spring Lake, NJ from 03/2014 – 08/2016. Prior to that, he was registered with Westminster Financial Services in Providence, RI from 03/2010 – 03/2013.
Cody’s Broker Check report lists ten disclosures of which six are customer disputes. The allegations include taking funds from clients, and unauthorized and unsuitable investments. IFS Securities discharged Cody in September 2016 for allegations of forgery and selling away.
Failure to Supervise
Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Cody’s former employers failed to properly supervise him, his employers may be held responsible for the losses in a FINRA arbitration claim.
If you suffered losses investing with Richard G. Cody and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information about the firm please visit www.whitesecuritieslaw.com.