Sonn Law Group has filed a FINRA arbitration claim on behalf of its client, an armed forces member, against Monmouth Capital Management, LLC (“MCM”) regarding its former financial advisor Caz Craffy. The claim alleges that Mr. Craffy engaged in unauthorized and excessive trading/churning resulting in losses to the client. The claim also alleges that MCM failed to properly supervise Mr. Craffy and the client’s accounts. Mr. Craffy has had at least on other claim filed as a result of his unauthorized and excessive trading/churning. Furthermore, Mr. Craffy was terminated by MCM and was ultimately barred from the industry by FINRA.
FINRA began investigating Mr. Craffy in November 2022 for his outside business activities (OBA.) The investigation began following a customer complaint to FINRA. The investigation included Mr. Craffy’s potential conversion of customer money, loans or gifts from customers, active trading in customer accounts, and failure to fully disclose certain outside business activities. Monmouth Capital terminated Mr. Craffy’s employment due to his failure to disclose his OBA.
On or about December 6, 2022, Mr. Craffy consented to being barred from the industry by FINRA. While Mr. Craffy acknowledged receipt of FINRA’s request for documents and information, through counsel, Mr. Craffy determined it necessary to utilize his 5th Amendment rights at this time not to testify before FINRA or produce documents to FINRA’s requests under related protections.
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