According to FINRA, Alex E. Etter (CRD #2981742, Old Tappan, New Jersey) was recently suspended from the securities industry for two years and was assessed a deferred fine of $10,000; required to requalify by examination before he reenters the securities industry in any capacity; ordered to pay deferred disgorgement of ill-gotten gains received in the amount of $227,395.45, plus interest; and ordered to pay deferred restitution to customers in the total amount of $6,509.99, plus interest.
Without admitting or denying the allegations, Alex E. Etter consented to the sanctions. According to FINRA, he allegedly recommended that his customers engage in an unsuitable active trading investment strategy, despite the fact he purportedly failed to understand the risks of the investment strategy being recommended, or the impact the allegedly staggering commissions and fees generated by this active trading investment strategy would have on his customers’ accounts.
The findings also stated that Etter allegedly did not have a reasonable basis to recommend such a strategy to his customers. As a result of the recommendation by Etter and other representatives at his member firm, Caldwell Securities, of an unsuitable active investment trading strategy, 15 customer accounts allegedly paid over $1 million in commissions and fees.
Alex E. Etter purportedly did not conduct any due diligence into the active trading investment strategy he was recommending. Etter’s suspension is in effect from October 17, 2016, through October 16, 2018.
For FINRA’s full findings see FINRA Case #2014039091903.
According to his FINRA Broker Check report Etter was registered with Caldwell International Securities in Englewood Cliffs, NJ from 04/12/2011 – 05/16/2016. He has four disclosures listed on his broker report.
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