Eugene Long (CRD#: 2386267), a broker registered with Cadaret, Grant & Co., Incorporated, was suspended from the securities industry by the Financial Industry Regulatory Authority (FINRA), according to his BrokerCheck record, accessed August 18, 2020. Why was he suspended? Keep reading to find out.
On July 2, 2020, Eugene Long entered into an Acceptance, Waiver, and Consent agreement with FINRA in which he consented to the entry of findings that he made discretionary trades in customer accounts without a customer authorization, and his member firm had not approved any of the accounts for discretionary trading. This violates FINRA Rule 2010, which states that members shall, in the conduct of business, “observe high standards of commercial honor and just and equitable principles of trade.” Mr. Long consented to a fee of $5,000 and a 15-day suspension. A copy of Eugene Long’s AWC can be viewed here.
This is not the only disclosure in Eugene Long’s BrokerCheck record.
On September 11, 2018, the Securities and Exchange Commission (SEC) censured Cadaret, Grant & Co., Incorporated with a cease-and-desist order. Eugene Long was named as one of the “Supervisory Respondents.” The Commission alleged the following:
- Eugene Long and certain other Cadaret Grant representatives recommended that customer buy “non-traditional exchange and traded products (or “non-traditional ETPS) that were suitable for sophisticated investors with very short investment horizons. The representatives either did not read, or read and dismissed, these warnings without a reasonable investigation and lacked a reasonable basis for their recommendations. Retail investors lost 90 percent of the amounts they invested in these particular non-traditional ETPs.
- During the relevant time period, between January 2015 and December 2016, Cadaret Grant had policies that stated that registered representatives generally should not recommend non-traditional ETPs for long or intermediate investment periods, and that representatives should receive training before recommending non-traditional ETPs to customers. As of January 2015, Supervisory Respondents failed to establish and implement a reasonable supervisory system for determining whether representatives had a reasonable basis for recommending that investors buy and hold non-traditional ETPs.
- Cadaret Grant also failed to adopt and implement policies designed to prevent unsuitable sales of non-traditional ETPs.
- Under the circumstances described, Supervisory Respondents failed to reasonably supervise registered representatives.
Eugene Long has passed the Series 65 Uniform Investment Adviser Law Examination, the Series 63 Uniform Securities Agent State Law Examination, the Securities Industry Essentials Examination, the Series 7 General Securities Representative Examination, and the Series 24 General Securities Principal Examination. He is a registered broker in Alabama, Colorado, Connecticut, Delaware, D.C., Florida, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin. He is also a registered investment advisor in Florida, Michigan, New Jersey, Pennsylvania, South Carolina, and Texas.
Eugene Long has worked in the securities industry for over two decades. During his 26-year career, he has worked at the following firms:
- Liberty Securities Corporation (CRD #: 14416)
- Independent Financial Securities, Incorporated (CRD #: 19924)
- Putnam Mutual Funds Corporation (CRD #: 7325)
- Cadaret, Grant & Co., Incorporated (CRD #: 10641)
If Eugene Long was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email email@example.com for your free case consultation with a securities attorney.