Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Christopher Cacace (Cacace), currently associated with J. Streicher & Co. L.l.c., has been subject to at least one disclosable event. These events include one regulatory event. Several of those complaints against Cacace concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.
FINRA BrokerCheck shows a pending customer complaint on August 15, 2024.
Christopher Cacace was named a respondent in a FINRA complaint alleging that while tasked as his member firm’s Chief Compliance Officer (CCO) he failed to reasonably supervise, investigate, and respond to red flags of churning, excessive trading, and unsuitable trading by registered representatives of the firm. The complaint alleges that Cacace never restricted or limited the trading by the firm representatives in their customers’ accounts or took any other meaningful steps to prevent their trading. Although the representatives had extensive regulatory histories and numerous customer complaints related to unsuitable trading, excessive trading, and/or churning, and were the subject of regulatory disclosures that indicated that they were under financial strain, Cacace failed to reasonably supervise them and enabled them to engage in potentially excessive and unsuitable trading, and this trading resulted in extensive customer harm. The firms’ customers incurred losses of $709,444 while the firm and its representatives obtained $546,855 in commissions, fees, and costs.
