Nathan D. Caldwell Barred by FINRA After Refusing To Cooperate With Document Request

Advisors are held to high standards not only in how they treat client accounts but also in how they respond to regulatory investigations. When those obligations are ignored, the consequences can be serious and permanent.

Nathan D. Caldwell (CRD #7380221), a former broker in Corinth, Mississippi, has been barred by the Financial Industry Regulatory Authority (FINRA) after refusing to provide documents and information during an investigation into alleged misconduct reported by his former firm. The case stems from allegations that Caldwell made unauthorized transfers from a customer’s bank account into his own. (FINRA Case #2024083648301)

The Sonn Law Group is currently investigating potential claims on behalf of affected investors.

FINRA Bars Caldwell for Failing To Comply With Investigation

On March 19, 2025, a Letter of Acceptance, Waiver and Consent (AWC) was issued in which Caldwell consented to a permanent bar without admitting or denying the findings. The action followed his refusal to produce documents and information requested by FINRA in connection with its investigation into allegations reported on his Form U5.

According to FINRA, Caldwell’s firm, Osaic Institutions (formerly Infinex Investments), disclosed that he was discharged in October 2024 for “unauthorized bank account transfers from a customer’s account to Caldwell’s account.” After multiple requests made in December 2024 and January 2025, Caldwell confirmed through his counsel in February 2025 that he would not comply with FINRA’s demands.

As a result, FINRA found that Caldwell violated Rule 8210, which mandates cooperation with regulatory requests, and Rule 2010, which requires ethical conduct. The bar took effect upon acceptance of the AWC.

A bar from associating with any FINRA member in all capacities is the most serious penalty FINRA can impose. It means Caldwell is permanently banned from working in any capacity at any FINRA-registered firm, not just as a broker or advisor, but also in clerical, administrative or supervisory roles. 

Employment History and Licensing Background

Caldwell was associated with Osaic Institutions, Inc. in an unregistered capacity beginning in August 2021. The firm filed for his registration as a General Securities Representative in April 2023 but terminated his association in October 2024 due to alleged misconduct.

He is not currently registered with any FINRA-member firm and is now subject to statutory disqualification. His known affiliations were limited, and no securities licenses were active or in effect at the time of the disciplinary action.

Why Non-Cooperation With FINRA Undermines Investor Protection

FINRA Rule 8210 grants the regulator broad authority to request documents and testimony from member firms and associated persons. These requests are essential to investigating possible fraud, misconduct or supervisory failures. Refusing to comply cuts off the regulator’s ability to uncover critical facts and protect investors from future harm.

In Caldwell’s case, the refusal came in response to serious allegations involving unauthorized fund transfers. A broker’s unwillingness to provide documentation in such circumstances prevents regulators from assessing the full scope of the issue, including whether additional clients may have been affected or whether similar misconduct occurred elsewhere.

Such refusal also raises red flags about the broker’s credibility, transparency and adherence to ethical standards central to the securities industry.

Red Flags for Investors

While the details in Caldwell’s case involve behind-the-scenes conduct, there are warning signs that could alert clients to similar issues. Investors should be on guard if:

• A broker moves or transfers funds without clear written permission
• Statements reflect unexplained withdrawals, deposits or account adjustments
• Communication about transactions is vague, delayed or inconsistent
• An advisor suddenly becomes unreachable or abruptly leaves their firm
• You are notified of an investigation or your broker’s registration termination

These red flags may point to unauthorized activity or efforts to obscure misconduct. It’s important to act promptly if you notice unusual patterns or suspect wrongdoing.

Get Legal Guidance From Sonn Law Group

If you worked with Nathan D. Caldwell or suspect your accounts were mishandled or misused, it’s important to have your situation evaluated by experienced counsel. Even if misconduct occurred outside of a traditional brokerage account, firms may still be liable for failing to supervise or prevent wrongdoing.

Sonn Law Group represents investors nationwide in claims against brokers, brokerage firms, banks and insurance companies for negligence, fraud and other forms of financial advisor misconduct. We represent individuals, trusts, corporations and institutions on a contingency fee basis, meaning you pay nothing unless we recover funds on your behalf.

If you have experienced investment losses or have concerns about your advisor’s conduct, contact us for a free consultation. Call 833-912-3000 or submit our contact form.