New Jersey Broker Lucas Lichtman Fined and Suspended by FINRA

The broker is reported to have made investments to generate commissions for himself

Lucas Lichtman cannot act as a broker again until July of 2017. In October of 2016, the Financial Industry Regulatory Authority (FINRA) handed him a nine-month suspension – as well as a fine of $7,500 – due to allegations that he made unsuitable recommendations that also resulted in extra commissions.

A relatively new broker, Lichtman has only worked in New Jersey, first for Investors Capital Corp. out of Englewood Cliffs in 2008. He then joined World Equity Group, Inc. also in Englewood Cliffs; then SWS Financial Services located in Tenafly. Lichtman’s most recent firm was another Englewood Cliff outfit: Caldwell International Securities. It was there that he was accused of making unsuitable recommendations and churning.

Churning is a serious accusation because it means that a broker didn’t act for a client’s best interests, and executed trades for the purposes of generating commissions. According to FINRA, Lichtman made recommendations without understanding the risks involved or how clients would be affected by “the staggering commissions and fees generated by this active trading investment strategy.”

The report went on to say that Lichtman – along with other representatives of the firm – did not have a reasonable basis for recommending this strategy, which resulted in more than $1 million in commissions and fees.

When Lichtman returns to work, it won’t be for Caldwell International Securities. As of January, the firm has been expelled from the securities industry by FINRA due to the fees they failed to pay that exceeded $1 million.

To find out more about Lucas Lichtman’s history, you can read his BrokerCheck report. You can also get more information on the actions taken against Caldwell in this report.

If you put your money in the hands of Lucas Lichtman or someone else at Caldwell International Securities, you probably have some questions. To get answers, contact the Silver Law Group. Scott Silver is the current chair of the American Trial Lawyers Association Securities and Financial Fraud Group, and our attorneys specialize in fighting for clients who have lost investments at the hands of brokers and financial advisors who have taken advantage of their positions.

You will be able to talk to a securities arbitration attorney to learn about your rights and options. We only work on contingency, which means we don’t get paid unless you reclaim money. For a no-obligation consultation, call us at 1-800-975-4345 or just fill out our online contact form.