Robert Edward Grady – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Robert Edward Grady.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Robert Edward Grady. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Robert Grady
Robert Edward Grady is an Investment Adviser. Robert Edward Grady’s Central Registration Depository (CRD) number is 226921 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/226921.
Click here to download a Detailed Audit Report for Robert Edward Grady.
Robert Edward Grady has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Robert Edward Grady’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 9/26/2008
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C10010089
- DocketNumberAAO: 10010089
- Initiated By: FINRA
- Allegations: RESPONDENT FAILED TO PAY FINES AND/OR COSTS OF $7,788.36 IN FINRA CASE #C10010089
- Resolution: Other
- Sanction Details :: Sanctions: Revocation/Expulsion/Denial
- Sanction Details: IN ACCORDANCE WITH NASD RULE 8320, RESPONDENT’S FINRA REGISTRATION IS REVOKED FOR FAILURE TO PAY FINES AND/OR COSTS.
DISCLOSURE 2 –
- Event Date: 7/11/2001
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C10010089
- DocketNumberAAO: 10010089
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Allegations: >07/16/01 NASD CONDUCT RULES 2110, 3010 – MEMBER FIRM ACTING THROUGH RESPONDENT, FAILED TO MAINTAIN SUFFICIENT NET CAPITAL WHILE CONDUCTING A SECURITIES BUSINESS; FAILED TO ADOPT, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES ADEQUATELY DESIGNED TO ENSURE COMPLIANCE WITH SEC RULE 15C3-1 THE, NET CAPITAL RULE.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $10,000.00 Sanctions: Suspension
- Sanction Details: SUSPENDED FROM ASSOCIATING WITH ANY NASD MEMBER FIRM IN ALL PRINCIPAL CAPACITIES FOR A PERIOD OF FIVE (5) BUSINESS DAYS. **SUSPENSION EFFECTIVE MONDAY AUGUST 6, 2001 TO CLOSE OF BUSINESS FRIDAY AUGUST 10, 2001**
DISCLOSURE 3 –
- Event Date: 1/7/2001
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Award / Judgment
- Disclosure Detail :: Allegations: NEGLIGENCE; MISREPRESENTATION; INDUCEMENT; ETC., ETC., RELATING TO THE SALE OF A PENNY STOCK.
- Damage Amount Requested: $25,000.00
- Damages Granted: $25,000.00
- Arbitration Claim File Detail: 00-00093
- Arbitration Docket Number:
DISCLOSURE 4 –
- Event Date: 11/8/1999
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: IOWA SECURITIES BUREAU, ROBERT KOPPIN (515) 281-4441
- Allegations: THE IOWA SECURITIES BUREAU ALLEGED THAT ON APRIL 19, 1999, THE U.S. SECURITIES AND EXCHANGE COMMISSION ISSUED AN ORDER AGAINST GRADY FINDING THAT HE FAILED TO REASONABLY SUPERVISE A TRADER EMPLOYED AT THE FIRM. GRADY WAS SUSPENDED FOR A PERIOD OF NINE MONTHS IN A SUPERVISORY CAPACITY WITH ANY BROKER OR DEALER BEGINNING ON OR ABOUT JUNE 3, 1999. THE BUREAU REQUESTED THAT GRADY’S SECURITIES AGENT LICENSE IN IOWA BE SUSPENDED UNTIL HIS SUPERVISORY SUSPENSION WAS COMPLETED.
- Resolution: Decision
- Sanction Details :: Sanctions: Suspension
- Sanction Details: GRADY WAS SUSPENDED AS A SECURITIES AGENT IN THE STATE OF IOWA FROM DECEMBER 13, 1999 (WHEN THE ALJ’S DECISION BECAME FINAL) UNTIL MARCH 3, 2000.
- Broker Comment: THE ALJ FOUND THE EVIDENCE PRESENTED THAT MR GRADY WAS SUBJECT TO AN ORDER ENTERED AFTER NOTICE AND OPPORTUNITY FOR A HEARING ISSUED BY THE SEC THAT FOUND GRADY IN VIOLATION OF THE SEC ACT OF 1934. THESE FACTS BRING GRADY WITHIN THE PROVISIONS OF THE IOWA CODESECTIONS 502.304(1)(F)(K)(L)AND THEREFORE SUBJECT TO SANCTIONS THEREIN. GRADY WAS SUSPENDED FROM DEC 13,1999 UNTIL MARCH 3,2000.
DISCLOSURE 5 –
- Event Date: 4/20/1999
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: SECURITIES AND EXCHANGE COMMISSION
- Resolution: Order
- Sanction Details :: Sanctions: Disgorgement/Restitution Sanctions: Suspension
- Broker Comment: NOT PROVIDED
DISCLOSURE 6 –
- Event Date: 5/5/1995
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C10950029
- DocketNumberAAO: 10950029
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $15,000.00 Sanctions: Censure
- Broker Comment: Not Provided
DISCLOSURE 7 –
- Event Date: 4/28/1993
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: MASSACHUSETTS SECURITIES DIVISION
- Allegations: Not Provided
- Resolution: Consent
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $120.00
- Sanction Details: ON JULY 7, 1993 A CONSENT ORDER WAS ENTERED BY THE MASSACHUSETTS SECURITIES DIVISION IN RESPECT TO GRADY AND HATTCH, ROBERT E. GRADY AND RAYMOND A. HATCH
- Broker Comment: Not Provided
DISCLOSURE 8 –
- Event Date: 3/1/1967
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: Unknown
- Initiated By: NEW YORK STOCK EXCHANGE
- Resolution: Decision
- Sanction Details :: Sanctions: Suspension
- Broker Comment: Not Provided
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- BILTMORE INTERNATIONAL CORPORATION (CRD#: 21163) :: 2/25/2002 – 10/19/2006 :: EDISON, NJ
- GRADY AND HATCH & COMPANY, INC. (CRD#: 14262) :: 8/25/1984 – 7/16/2001 :: STATEN ISLAND, NY
- BEARE BROTHERS & CO. INC. (CRD#: 596) :: 6/6/1983 – 11/1/1985
- PROPP & COMPANY, INC. (CRD#: 3094) :: 7/2/1974 – 12/7/1979
- MACK, BUSHNELL & EDELMAN, INC. (CRD#: 6620) :: 8/2/1973 – 5/10/1974
- PURCELL GRAHAM & COMPANY (CRD#: 1000003) :: 6/24/1969 – 7/20/1973
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Robert Edward Grady, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Robert Grady
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Robert Edward Grady – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (226921) for the broker – Robert Edward Grady
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.