Christopher Cacace Suspended Over Alleged Churning

Christopher Cacace (CRD# 4308782[1]), a broker registered with Velocity Clearing and J. Streicher & Company, allegedly failed to prevent churning, according to a pending complaint. MDF Law is investigating the New York City financial professional for similar conduct. If you are a client of Mr. Cacace with concerns about your investments, contact us as soon as possible for a free consultation.

To learn more about the complaint against Mr. Cacace, continue reading this post. The information herein is based on a September 5, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record.

FINRA Complaint: Cacace Failed to Respond to Red Flags

On August 15, 2024, FINRA named Mr. Cacace as a respondent in a complaint regarding his activities. As his BrokerCheck report discloses, the pending complaint concerns his performance as Chief Compliance Officer of SW Financial. It specifically alleges that he “failed to reasonably supervise, investigate, and respond to red flags of churning, excessive trading, and unsuitable trading” by firm representatives. 

Despite these red flags, according to FINRA, he “never restricted or limited” trading by these representatives. Nor did he take “meaningful steps to prevent their trading,” FINRA alleged. The representatives in question had “extensive regulatory histories and numerous customer complaints,” FINRA’s complaint states. It adds that these complaints included allegations of “unsuitable trading, excessive trading, and/or churning.”

Per FINRA’s complaint, Mr. Cacace “failed to reasonably supervise” these representatives. It alleges further that he “enabled them to engage in potentially excessive and unsuitable trading, and this trading resulted in extensive customer harm.” As the regulator asserts, the customers affected by these alleged activities “incurred losses of $709,444.” Meanwhile, per FINRA, “the firm and its representatives obtained $546,855 in commissions, fees, and costs.” The disciplinary action remains pending.

2017 Sanction Alleged Compliance Failures

The pending FINRA complaint against Mr. Cacace is not the first time he’s fallen under regulatory scrutiny. In 2017, FINRA sanctioned him over allegations that while he was registered with Legend Securities, he failed to ensure the firm timely reported information regarding customer complaints, including a customer arbitration. FINRA ordered him to pay a fine of $5,000 and suspended him from registering in any principal capacity for 20 days. 

“I deny all the allegations against me,” he wrote in a “Broker Comment” appended to the disclosure, adding that he “only agreed to the sanctions to mitigate further litigation costs.” In conclusion, he wrote, “I was not the principal in charge of the reporting of 4530’s.”

FINRA: Cacace Based in New York City

Christopher Cacace launched his career as a broker in 2000, when he registered with Bocklet & Company in New York City. Over the subsequent years, he worked with firms including Cohen Capital Group, Rothschild Lieberman, SW Financial, and TradeZero America. He is currently registered with J. Streicher & Company and Velocity Clearing, in both cases at the firms’ New York City offices. With 23 years of experience as a broker, he has completed 14 industry exams, including the Series 14 and the Series 21. 

Victim of Investment Fraud? Contact MDF Law 

Are you a current or former client of Christopher Cacace with complaints about your investments? Were your accounts unsuitably and/or excessively traded, or were the risks associated with your investments omitted? You may have grounds to file a FINRA arbitration claim to pursue the recovery of damages. 

At MDF Law, our attorneys boast decades of experience advocating for the victims of investment fraud. We have successfully recovered tens of millions in losses. Our clients only pay a fee if they recover damages, and we offer free consultations to investors nationwide. Call 800-767-8040 to speak with an attorney today.