Gregg Darrell Caplitz – 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 Gregg Darrell Caplitz.
BrokerComplaints.com is currently investigating allegations related to Gregg Darrell Caplitz. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Gregg Caplitz
Gregg Darrell Caplitz is an Investment Adviser. Gregg Darrell Caplitz’s Central Registration Depository (CRD) number is 1267058 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1267058.
Click here to download a Detailed Audit Report for Gregg Darrell Caplitz.
Gregg Darrell Caplitz 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 Gregg Darrell Caplitz’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 2/7/2017
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC IA Release 4644, February 7, 2017: The Securities and Exchange Commission (Commission) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act) against Gregg D. Caplitz (Caplitz). On April 3, 2014, Caplitz pled guilty to one count of conspiracy, one count of investment adviser fraud, one count of making a false filing with the SEC, and four counts of wire fraud, before the United States District Court for the District of Massachusetts, in United States v. Gregg D. Caplitz, Criminal Case No. 12-10015-WGY. On May 17, 2016, he was sentenced to three and a half years in prison and ordered to pay restitution in the amount of $1.89 million.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO
- Duration: Indefinite
- Start Date: 2/7/2017
DISCLOSURE 2 –
- Event Date: 3/19/2013
- Disclosure Type: Civil
- Disclosure Resolution: Final
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC LITIGATION RELEASE 22648, MARCH 19, 2013: THE SECURITIES AND EXCHANGE COMMISSION ANNOUNCED AN ASSET FREEZE AGAINST A MASSACHUSETTS-BASED INVESTMENT ADVISER CHARGED WITH STEALING MONEY FROM CLIENTS WHO WERE GIVEN THE FALSE IMPRESSION THEY WERE INVESTING IN A HEDGE FUND. IN A COMPLAINT UNSEALED TODAY IN FEDERAL COURT IN BOSTON, THE SEC ALLEGES THAT GREGG D. CAPLITZ AND THE INVESTMENT ADVISER FIRM IN WILMINGTON, MASS., RAISED AT LEAST $1.1 MILLION FROM CLIENTS THAT WAS USED FOR PURPOSES OTHER THAN INVESTING IN THE HEDGE FUND THEY PURPORTED TO MANAGE. INVESTOR MONEY WAS MERELY TRANSFERRED TO THE FIRM’S CHIEF INVESTMENT OFFICER AND OTHER MEMBERS OF HER FAMILY WHO SPENT IT ON PERSONAL EXPENSES. THE FIRM REPORTED IN SEC FILINGS THAT IT HAS $100 MILLION IN ASSETS UNDER MANAGEMENT, HOWEVER THE PURPORTED HEDGE FUND ACTUALLY HAS NO ASSETS. THE U.S. DISTRICT JUDGE GRANTED THE SEC’S REQUEST FOR AN EMERGENCY COURT ORDER TO FREEZE THE ASSETS OF CAPLITZ AND HIS FIRM AS WELL AS OTHERS WHO RECEIVED INVESTOR MONEY AND HAVE BEEN NAMED AS RELIEF DEFENDANTS FOR THE PURPOSES OF RECOVERING INVESTOR FUNDS IN THEIR POSSESSION. ACCORDING TO THE SEC’S COMPLAINT, CAPLITZ’S SCHEME BEGAN AROUND 2009. FOR EXAMPLE, CAPLITZ CONVINCED ONE CLIENT AND HIS WIFE TO INVEST $275,000 IN THE HEDGE FUND THAT CAPLITZ CLAIMED WOULD GENERATE THEM ABOUT $1,000 PER MONTH IN RETURNS. CAPLITZ ALSO SOLICITED A 20-YEAR CLIENT WHO AFTER CONSIDERING HIS SALES PITCH DECIDED NOT TO INVEST IN THE HEDGE FUND BECAUSE SHE CONSIDERED IT TOO RISKY OF AN INVESTMENT FOR SOMEONE HER AGE. BUT CAPLITZ APPARENTLY TOOK ACTION TO OBTAIN FUNDS FROM THE CLIENT’S IRA ACCOUNT AND WIRED THOUSANDS OF DOLLARS TO A FIRM BANK ACCOUNT. THE CLIENT WAS NOT AWARE OF THE TRANSFERS AND DID NOT AUTHORIZE THEM. THE SEC ALLEGES THAT INSTEAD OF USING INVESTOR FUNDS TO PURCHASE SHARES IN A HEDGE FUND OR TO MANAGE OR DEVELOP A HEDGE FUND, CAPLITZ TRANSFERRED CONTROL OF CLIENT MONEY TO HIS FRIEND WHO WORKS AT THE FIRM. INVESTOR FUNDS ALSO WERE TRANSFERRED TO HER SONS, DAUGHTER-IN-LAW, AND A COMPANY. THE INDIVIDUALS, WHO ALL LIVE IN LAS VEGAS, OWN THAT COMPANY. THE INDIVIDUALS USED INVESTOR MONEY TO PAY LEGAL BILLS AND OTHER PERSONAL EXPENSES AT GAS STATIONS, DRUGSTORES, AND RESTAURANTS. THE SEC ALLEGES THAT AS PART OF HIS SCHEME, CAPLITZ OBTAINED FUNDS FROM A REAL ESTATE INVESTMENT TRUST (REIT) BY FALSELY REPRESENTING THAT A HEDGE FUND HE OPERATED WAS INTERESTED IN MAKING AN INVESTMENT IN THAT TRUST. THE PUBLIC, NON-TRADED REIT GAVE $135,000 TO CAPLITZ SO HE COULD CONDUCT DUE DILIGENCE ON THE REIT AS A PRECURSOR TO HIS MAKING A $5 MILLION INVESTMENT THAT NEVER MATERIALIZED. THE SEC ALLEGES THAT CAPLITZ AND THE FIRM VIOLATED SECTION 10(B) OF THE SECURITIES AND EXCHANGE ACT OF 1934 AND RULE 10B-5, SECTION 17(A) OF THE SECURITIES ACT OF 1933, AND SECTIONS 206(1) AND 206(2) OF THE INVESTMENT ADVISERS ACT OF 1940. THE COMPLAINT SEEKS A PERMANENT INJUNCTION PLUS DISGORGEMENT, PREJUDGMENT INTEREST, AND A PENALTY AGAINST CAPLITZ AND HIS FIRM. THE COMPLAINT ALSO NAMES THE FOUR INDIVIDUALS AND THEIR COMPANY AS RELIEF DEFENDANTS AND SEEKS DISGORGEMENT PLUS PREJUDGMENT INTEREST.
- Resolution: Judgment Rendered
- Sanction Details :: Sanctions: Disgorgement
- Sanction Details :: Amount: $1,899,203.00 Sanctions: Injunction
DISCLOSURE 3 –
- Event Date: 1/18/2012
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: 15 USC 80b-6(1), Willful Violation of Sections 206 and 217 of the Investment Advisers Act
- Disposition: Pled guilty Charges: 18 USC 1343, Mail Fraud
- Disposition: Pled guilty Charges: 26 USC 7212(a), Corrupt Endeavor to Impede Administration of Internal Revenue Laws
- Disposition: Pled guilty Charges: 26 USC 7206(1), False Tax Return
- Disposition: Pled guilty Charges: 18 USC 371, Conspiracy
- Disposition: Pled guilty Charges: 15 USC 78, False Filing with the SEC
- Disposition: Dismissed
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.
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.
- MSC – BD, LLC (CRD#: 142927) :: 3/13/2013 – 3/20/2013 :: CUMMING, GA
- ALTERNATIVE WEALTH STRATEGIES, INC. (CRD#: 130933) :: 7/17/2007 – 2/24/2011 :: WILMINGTON, MA
- WHARTON EQUITY CORPORATION (CRD#: 10170) :: 2/25/2002 – 7/16/2007 :: WOBURN, MA
- PACVEST ASSOCIATES, INC. (CRD#: 29583) :: 7/7/1993 – 2/21/2002 :: WOODSTOCK, CT
- G.R. STUART & COMPANY, INC. (CRD#: 29101) :: 3/16/1993 – 7/22/1993 :: MAYNARD, MA
- FINANCIAL SECURITIES NETWORK,INC. (CRD#: 16153) :: 10/18/1991 – 3/16/1993
- LINSCO/PRIVATE LEDGER CORP. (CRD#: 6413) :: 12/16/1989 – 10/2/1991 :: FORT MILL, SC
- LINSCO FINANCIAL GROUP, INC. (CRD#: 524) :: 9/23/1985 – 12/16/1989
- FIRST INVESTORS CORPORATION (CRD#: 305) :: 5/16/1984 – 10/2/1985
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 Gregg Darrell Caplitz, 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.
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 Gregg Caplitz
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Gregg Darrell Caplitz – 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 (1267058) for the broker – Gregg Darrell Caplitz
- 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.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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