National investment loss lawyers KlaymanToskes reports broker/investment advisor Kevin Cory (CRD#1716966) of R.F. Lafferty & Co., Inc. and Chapin Davis Investments has been permanently barred from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”).
FINRA’s decision comes after Cory intentionally misrepresented and omitted material facts in communications with his former customers, who had invested in a purported investment fund Cory formed and managed. According to FINRA BrokerCheck, Kevin Cory was previously registered with R.F. Lafferty & Co., Inc. in New York, NY. Cory was also previously registered with Chapin, Davis in Baltimore, MD.
Investors that suffered losses with Kevin Cory may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lawrence@klaymantoskes.com to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Kevin Cory, disclosing that he consented to sanctions of a permanent bar from associating with any FINRA member in all capacities.
According to the AWC, while associated with R.F. Lafferty & Co., “Cory created and distributed two fictitious account statements to two of his former Chapin, Davis customers who had invested in a purported investment fund Cory formed and managed.” The Offering Memorandum for the Fund, created by Cory, allegedly represented that the Fund’s strategy was to invest in “global equity securities, with an overall long market bias.”
Rather than investing their money in the purported investment fund, Cory used the customers’ funds to make loans to various small businesses, including businesses owned by Cory or managed by his friends. FINRA’s investigation found that the small businesses defaulted on the loans from the Fund. When the Fund ran out of assets, its corporate registrations were canceled due to failure to pay taxes.
The customers began making inquiries regarding their investment in the Fund and requested that Cory send them account statements. The AWC states that “Cory prepared and sent the former customers two fictitious account statements in which he intentionally misrepresented that the former customers’ investment in the Fund had risen in value when, in fact, their investment was worthless.”
Further, “Cory also intentionally misrepresented and omitted material facts regarding the former customers’ investment in the Fund in 14 text messages to the former customers between November 2018 and August 2020.” In these messages, Cory misrepresented material facts regarding the customers’ investment in the Fund, including Cory’s collection efforts on the overdue loans. Cory also allegedly made false claims that individuals other than him were responsible for financial information for the Fund.
By intentionally omitting in his communications with the customers that the Fund had no assets and no longer existed, Kevin Cory violated FINRA Rule 2010 (Standards of Honor and Principles of Trade). In addition, Cory made false and misleading statements to his former customers, in violation of FINRA Rule 2210 (Communications with the Public).
Brokers, investment advisors, and their firms are responsible for providing suitable investment advice. They also have a duty to avoid making misrepresentations regarding investment recommendations, and to avoid overconcentrating their customers’ accounts in one particular security or sector of securities.
Former customers of Kevin Cory that suffered losses due to unsuitable investment recommendations may hold their brokerage firm responsible through a FINRA arbitration claim. Contact KlaymanToskes immediately to discuss your recovery options at 888-997-9956 or on the web at www.klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com