R. F. Lafferty & Co., Inc. broker Kevin Cory (CRD# 1716966) is accused of broker misconduct. He has been registered with R. F. Lafferty & Co., Inc. in New York, New York, from 2017 to 2022. Previously, he was registered with Chapin, Davis in Baltimore, Maryland, from 2010 to 2013.
In May 2023, FINRA barred Kevin Cory after he “consented to the sanction and to the entry of findings that he intentionally misrepresented and omitted material facts in communications with his former customers.” According to his BrokerCheck profile, while he was not registered with a brokerage firm, he solicited two customers to invest $500,000 of their retirement funds in a purported investment fund that was formed and managed by Kevin Cory. According to FINRA, “The offering memorandum for the fund, which was prepared by Cory, represented that the fund’s strategy was to invest in global equity securities, with an overall long market bias. However, instead of pursuing this strategy, Cory used the former customers’ funds to make loans to various small businesses, including businesses owned by Cory or managed by his friends and associates. The small businesses, including those owned by Cory, defaulted on the loans from the fund.” FINRA reported that as a result of this, the fund had no assets, its corporate registrations were cancelled for failure to pay taxes. Regrettably for the customer, FINRA reported that he “prepared and sent the former customers fictitious account statements wherein he intentionally misrepresented that their investment in the fund had risen in value when, in fact, their investment was worthless. Cory also intentionally misrepresented and omitted material facts regarding the value of the former customers’ investment in the fund, the nature of the fund’s loans to small businesses, and his collection efforts on the overdue loans. In addition, Cory falsely claimed that individuals other than him were responsible for preparing financial information for the fund.”
Kevin Cory Customer Complaints
He has been the subject of one customer complaint, according to his CRD report:
October 2021. “Around January 2014, Mr. Cory approached his clients to invest their retirement savings into a limited partnership he created without the Firm’s knowledge or approval. Clients allege in their complaint Mr. Cory did not invest their funds but used them to pay for his personal living expenses. According to the clients Mr. Cory stopped all communications with the clients in August 2019.” The customer sought $500,000 in damages, and the case was settled for $250,000. The complaint was regarding direct investments, and it took place while he was registered with Chapin, Davis.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, R. F. Lafferty & Co., Inc. may be liable for investment or other losses suffered by Kevin Cory’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
"*" indicates required fields
