Securities Lawyers Blog
Our firm is investigating claims made by The Financial Industry Regulatory Authority (FINRA) and the Securities Exchange Commission (SEC) against broker Richard Cody (Cody) that involves potentially millions in either stolen client funds or misrepresentations concerning the state of their accounts. Cody is a formerly associated broker with brokerage firms Westminster Financial Securities, Inc. (Westminster), Concorde Investment Services, LLC (Concorde Investment), and IFS Securities (IFS). Cody conducted his business through his advisory firm Boston Investment Partners. According to brokercheck, Cody has been subject to three regulatory events, two investigations, and 15 customer disputes among other disclosures.
The SEC’s complaint lays out an astonishing scheme to defraud investors. The SEC alleged that Cody would tell retired clients that their accounts were flourishing and making money when in fact they were dwindling to near-zero balances. The SEC tells the tale of three clients who were lied to by Cody about their rapidly depleting retirement accounts through monthly deductions that were unsustainable.
Further, to make the scheme work Cody fabricated account statements, told clients they were withdrawing investment gains rather than depleting their principal, and sent a doctored document to indicate that a financial firm was holding an annuity on behalf of one client. Cody’s conduct occurred over a 12 year period in which Cody was registered as a broker with five different independent firms.