Helen Caldwell Pleads Guilty to “Nearly $1.5 Million” Elder Fraud
Helen Caldwell (CRD# 1957501), formerly a broker registered with Citi and Wells Fargo, pleaded guilty to elder fraud, according to a January 25, 2024 report by the Chicago Sun-Times. MDF Law is investigating the former broker and investment adviser for similar conduct. If you have concerns about your accounts, contact us for a free consultation.
Charged earlier in January by federal prosecutors, the former Chicago-based adviser admitted “swindling her older adult clients out of nearly $1.5 million,” the report states. As her Financial Industry Regulatory Authority (FINRA) BrokerCheck profile shows, she was previously barred by FINRA. More information about her alleged conduct follows below.
Charges: Caldwell Defrauded Older Clients
In a plea agreement reached with acting U.S. Attorney Morris Pasqual, Ms. Caldwell admitted to the wire fraud charge against her, per the Sun-Times. She confessed specifically to convincing “older Citi clients” to make investments in films that she produced under the banner of Canal Productions, a company she ran. “She told clients that they would share in the profits even though she ‘know that those representations were fault,'” the report described, citing her plea agreement.
Her clients invested “hundreds of thousands of dollars” in Canal Productions, funds that she transferred to her own accounts. She spent the money on personal expenses, according to the Sun-Times: “refurbishing her classic car, paying her parking tickets and paying for liquor, entertainment, home goods and décor and clothes.” The plea agreement reportedly described three unnamed victims.
Cook County Public Guardian Sues Citi, Helen Caldwell
While Ms. Caldwell faces up to 20 years of incarceration, per the Sun-Times, this may not represent the end of her legal troubles. The Cook County Public Guardian, an agency that acts on behalf of “adults with disabilities and their estates,” has filed a lawsuit against her and Citi. As the Sun-Times describes, the agency alleges that Citi “failed to adequately police Caldwell’s conflicts of interest.” It is seeking the payment of restitution to a former client of Ms. Caldwell, a retired nurse with dementia. “In court filings, Citi lawyers have said the bank shouldn’t be held financially liable for Caldwell’s actions,” the report observes.
Why Did FINRA Sanction Caldwell?
FINRA disclosed an enforcement action against Ms. Caldwell on July 6, 2023. According to its findings, she refused to provide on-the-record testimony requested by the regulator. FINRA requested the testimony as part of an investigation it launched after her former member firm disclosed that it was conducting an internal review of her conduct. As the disclosure states, this internal review concerned whether she adequately disclosed outside business activities “and solicited firm clients to invest in her film production business.”
According to FINRA, the firm filed another disclosure stating that its review concluded that she failed to “adequately disclose her OBA and was soliciting firm clients to invest in her OBA, several of whom subsequently made investments.” As the regulator’s findings note, “another firm” disclosed that it had discharged her after an internal review into “the accuracy of disclosures that she made to the firm and her compliance with its Outside Activities and Outside Investment Policy.”
Ms. Caldwell did not admit to or deny FINRA’s findings. She did, however, consent to a permanent bar from registering with any FINRA member firm in any capacity.
FINRA: Caldwell Last Based in Chicago
Helen Caldwell started her career as a broker in 1991, when she joined Chatfield Dean & Company’s office in Greenwood Village, Colorado. She has worked at a number of firms in the years since, including Signator Investors and Citigroup Global Markets. Her most recent registration, with Wells Fargo’s office in Chicago, began in 2021 and ended in 2022. With 30 years of experience as a broker, she has completed four industry exams, including two state securities law exams and two general industry/products exams.
Discuss Your Broker Fraud Case with MDF Law
MDF Law’s seasoned team of attorneys has recovered more than $100 millions in lost funds for the victims of investment fraud. If you have concerns regarding investments recommended by Helen Caldwell, contact our team to discuss your options. Our lawyers offer free consultations across the US. Your time to file an arbitration claim may be limited, so call 800-767-8040 for a free consultation today.