Former Advisor Richard Cody Sentenced for Fraud Charges
According to reports today, former investment advisor Richard Cody was sentenced earlier this week in federal court in Boston for deceiving his former clients concerning the management of their retirement savings as well as lying to the U.S. Securities and Exchange Commission.
Cody, 44, of Jacksonville, Fla., was reportedly sentenced to two years in prison and two years of supervised release after his prison term. He was also ordered to pay a fine of $30,000. Last November, Mr. Cody pleaded guilty to one count of violating the Investment Advisors Act of 1940 and two counts of making a false declaration in a court proceeding.
According to reports, Cody managed the retirement savings of three victims, including two in Massachusetts, from May 2005 to August 2016. Cody allegedly lied to his clients, assuring them that their retirement savings were secure, when in fact he knew they were not.
By 2014, the total value of their retirement savings had substantially dwindled, and the retirement savings of two victims were entirely gone. Cody allegedly provided the victims with fake account statements and tax documents to hide the losses.
Further, Cody purportedly lied to the SEC during a March 2017 sworn deposition in connection with a civil enforcement action the SEC had filed against him in December 2016. Cody allegedly made false declarations regarding fraudulent documents that he denied giving to two victims of the scheme.
According to his FINRA BrokerCheck report, Richard Cody has 34 disclosure events listed on his record during his 18 years working in the securities industry. His broker record includes 5 regulatory events, and 21 customer disputes among others. Despite his checkered employment record, he has been affiliated with 7 different advisory firms during his career, including Concorde Investment Services in Spring Lake, NJ, and Westminster Financial Services in Providence, Rhode Island.
Investigating Potential Lawsuits
The White Law Group continues to investigate potential lawsuits involving Richard Cody and the liability his former employers may have for failure to properly supervise his alleged activities.
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.