Update on Richard Cody – Broker Investigation
According to reports, former financial advisor Richard Cody pled guilty today to criminal charges filed by the U.S. Attorney for the District of Massachusetts.
As we previously told you, the SEC filed charges against Cody in December 2016, alleging that Cody defrauded at least three of his retired clients through his company, Boston Investment Partners over a twelve-year period. Cody allegedly concealed 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. 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. Two of the retirees reportedly lost all of their money.
The criminal charges in the indictment were based on the SEC’s complaint. The SEC was previously granted preliminary relief against Cody and his company, Boston Investment Partners, including an asset freeze.
The SEC’s litigation against Cody, which seeks disgorgement of allegedly ill-gotten gains plus interest and penalties, as well as permanent injunctive relief, is ongoing.
Cody pled guilty and is scheduled to be sentenced on February 4, 2019.
According to FINRA Broker Check, Cody was most recently registered with IFS Securities in 2016 in Spring Lake, NJ. Prior to that, he was registered with Concorde Investment Services in Spring Lake, NJ from March 2014 until August 2016.
His broker report lists 33 disclosure events, including 22 customer disputes. Allegations include taking funds from clients, and unauthorized and unsuitable investments, among others. IFS Securities fired Cody in September 2016 for allegations of “selling away, forgery.”
Failure to Supervise
Brokerage firms are required to properly supervise all advisors they employ. They must 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 Cody the securities attorneys at The White Law Group may be able to help you. For a free consultation to discuss your recovery options, please call the offices of 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.