Ted Cadwallader Embroiled in Unsuitability Dispute
Ted Cadwallader (CRD #:3256070), a broker formerly registered with IDS Life Insurance Company, is involved in an unsuitability dispute, according to his BrokerCheck record, accessed on January 7, 2022.
According to the allegations filed on November 1, 2021, Ted Cadwallader made an unsuitable investment recommendation when he recommended a private stock deal. The investor is seeking $30,000一the case is still pending.
Ted Cadwallader has been involved in two other disputes alleging unsuitability, including:
- On January 16, 2019, an investor filed a dispute against Ted Cadwallader for recommending unsuitable investments in Adiabatic Solutions. The case was settled for $90,000.
- On November 6, 2018, Ted Cadwallader was involved in an investor dispute after he allegedly recommended investing in unsuitable private securities. The case was denied.
What is Unsuitability?
“Unsuitability” is a term used to describe inappropriate recommendations and trades that are inconsistent with the customer’s goals and investment profile.
Under FINRA Rule 2111, a customer’s investment profile consists of a wide range of individual characteristics, including the customer’s:
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Risk tolerance
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
FINRA barred Ted Cadwallader for allegedly failing to respond to requests for information. The requests related to an investigation into Ted Cadwallader’s alleged private securities transactions and outside business activities.
FINRA Rule 8210 requires that registered brokers supply FINRA staff with all information and documents requested in the course of an investigation. A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
You can read a copy of the AWC here.
On October 13, 2014, Ameriprise Financial Services fired Ted Cadwallader after allegedly violating company policies related to outside business activities and private securities transactions.
FINRA Rule 3270 requires that brokers provide written notice to their firms regarding their outside business activities. By engaging in an outside business activity without providing prior written notice to his firm, Arthur Hoffman violated FINRA Rules 3270 and 2010.
A violation of FINRA Rule 3270 also constitutes a violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade.
Ted Cadwallader has four businesses listed in the Outside Business Activity of his detailed BrokerCheck report:
- Owner of Consulting Business: The Faith Based Coach
- Board of Director of Pacer Bioscience
- Board of Director of Adiabatic Processes Manufacturing
- Board Member and Manager of Advanced Earth Energy Technologies
FINRA Rule 3280 states that before participating in any private securities transaction, a registered broker should provide written notice to his/her member firm describing in detail the proposed transaction and proposed role. The broker should also state whether he/she has received or may receive selling compensation in connection with the transaction.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
Ted Cadwallader Background Information
Ted Cadwallader has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Besides IDS Life Insurance Company and Ameriprise Financial Services, Ted Cadwallader has not worked with any other firm.
Kurta Law Can Help
If you lost money while working with Ted Cadwallader, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.