Securities Lawyers Blog
Investors researching Calton & Associates, Inc. often want to know about the firm’s regulatory history before deciding whether to speak with a lawyer. This page summarizes the FINRA disciplinary actions in which Calton & Associates, Inc. was named. The securities fraud attorneys at Gana Weinstein LLP represent investors in claims against brokerage firms and financial advisors for investment fraud, unsuitable investment recommendations, excessive trading, and failure to supervise, and we can review the firm’s record together with your account statements to determine whether you have a claim.
Calton and Associates is an independent broker-dealer and investment adviser offering equities, corporate debt, municipal securities, mutual funds and advisory services through affiliated financial professionals. Formed in Florida in 1987 and headquartered in Tampa, the firm is registered in all 50 states and has grown by acquiring client accounts from closing broker-dealers since 2013.
Calton & Associates, Inc. – By the Numbers:
- CRD #: 20999
- Regulatory Events: 13
- Arbitration Events: 6
- Broker Employees: 355
Calton & Associates, Inc. – Investment Advisors:
- SEC #: 70036
- Assets Under Management: $1,576,517,756
- ADV Form Employee: 373
Calton & Associates, Inc. – In the News:
FINRA v. Calton & Associates, Inc. (Case #2020065108002) – Between May 14, 2018 and April 2021, Calton violated MSRB Rule G-15 and FINRA Rules 2232 and 2010 by failing to disclose required mark-up and mark-down information on hundreds of retail customer confirmations. Between July 2018 and May 2022, the firm violated MSRB Rule G-14 by failing to report the correct time of trade to the MSRB’s Real-Time Transaction Reporting System (RTRS) for more than 7,800 municipal securities transactions and FINRA Rules 6730 and 2010 by failing to report the correct time of execution to TRACE for more than 1,000 securities transactions. From May 2018 to July 2024, Calton violated MSRB Rule G-27 and FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system, including WSPs, reasonably designed to achieve compliance with applicable disclosure and reporting obligations in MSRB Rules G-15 and G-14 and FINRA Rules 2232 and 6730. For these violations, Calton is censured and fined $75,000.
FINRA v. Calton & Associates, Inc. (Case #2018060466201) – During the period of February 2014 to February 2020, Calton failed to establish and maintain a supervisory system reasonably designed to achieve compliance with the firm’s suitability obligations in connection with sales of non-traditional and volatility-linked exchange traded products (ETPs). Non-traditional and volatility-linked ETPs are complex products intended to be held for short periods of time as part of a trading strategy rather than as buy-and-hold investments. Although the firm was aware of the complex nature of the products, Calton permitted its representatives to offer the products to retail customers without a reasonable supervisory system to properly understand the products’ features and risks and review and monitor transactions. Consequently, Calton representatives recommended non-traditional and volatility-linked ETPs to retail customers without understanding the products were intended for short-term trading rather than as buy-and-hold investments, and the firm’s customers held the products for longer periods of time, resulting in losses. Based on the foregoing, Calton violated NASD Rule 3010(a) and FINRA Rules 2111, 3110(a) and 2010. In addition, during the period from January 1, 2014 to June 21, 2018, Calton failed to offer retail customers educational materials prior to their first purchases of collateralized mortgage obligations (CMOs), in violation of FINRA Rules 2216(b)(2) and 2010, and it failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA Rule 2216(b)(2), in violation of NASD Rule 3010 and FINRA Rules 3110 and 2010. Further, the firm unreasonably assigned an individual to supervise a registered representative despite the presence of a conflict of interest, in violation of FINRA Rules 3110(b)(6) and 2010, and it allowed a non-registered person to accept and enter securities orders, in violation of NASD Rule 1031 and FINRA Rules 1210, 3110, and 2010.
FINRA v. Calton & Associates, Inc. (Case #2019062882101) – Between January 1, 2019 and October 31, 2019 (the “Review Period”), Calton violated FINRA Rule 6730(a) by reporting to TRACE 1,329 customer allocation transactions in TRACE-eligible Securitized Products that should have been reported as 95 block transactions. Calton also violated FINRA Rule 6730(c) by failing to report to TRACE the correct capacity and/or commission for 391 transactions in TRACE-eligible securities. Additionally, Calton failed to establish and maintain a system, including written supervisory procedures (“WSPs”), to supervise the activities of each associated person that was reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules, specifically those concerning the Firm’s compliance with TRACE reporting rules in violation of FINRA Rules 3110(a), (b), and 2010.
You do not have to accept investment losses caused by broker negligence or fraud. Gana Weinstein LLP represents investors, including customers of Calton & Associates, Inc., in FINRA arbitration and in state and federal court, our consultations are free, and we welcome all inquiries.