Last Updated: October 2024 (Mesa, Arizona)
Daryl Ray Calton Financial Advisor Fraud Alert
National securities fraud lawyers Patil Law P.C. are investigating broker Daryl Ray Calton (CRD #1002304), who is no longer registered and has faced multiple customer disputes and regulatory actions, including violations of Arizona Securities Statutes. His record raises significant concerns for investors.
Daryl Ray Calton (CRD #1002304) is a financial advisor with decades of experience, most recently associated with Calton & Associates in Mesa, Arizona. However, his career has been marked by multiple customer disputes and regulatory actions, including allegations of unsuitable investment recommendations and breaches of fiduciary duty, raising concerns for potential investors. Below, we provide further details on these disputes and accusations against Calton.
Critical insights about Mesa, AZ stockbroker Daryl Ray Calton:
- Advisor Name: Daryl Ray Calton
- CRD: 1002304
- Location: Mesa, Arizona
- Current Employer: Calton & Associates, Inc.
- Classification: Stockbroker + Financial Advisor
- Primary Location: Mesa, AZ
- Can Daryl Ray Calton be sued in private FINRA arbitration: Yes
- Has Mr. Calton been barred by FINRA: No
- Highest Damages Allegation: $236,200
- Pending Customer Dispute: Yes
If you have suffered investment losses by Daryl Ray Calton, we strongly encourage you to exercise your rights to experienced legal representation. Recover what is owed to you by retaining a breach of fiduciary duty lawyer. Reach out to the legal team at Patil Law P.C. via the secure online form or call the firm directly toll-free at (800) 950-6553.
Lost Money With Stockbroker Daryl Ray Calton?
Daryl Ray Calton has faced several disputes, both resolved and pending, including allegations of unsuitable investment recommendations, fraud, and negligence:
- Pending Complaint (2023): A client alleges unsuitable recommendations related to real estate securities, seeking $236,200 in damages. The case is currently pending in Superior Court of Arizona, Maricopa County (Docket #CV2023-011525).
- Settlement (2024): A customer filed a complaint in March 2024, alleging unsuitable investments in REITs. The case was settled for $12,250 (FINRA Docket #24-00658).
- Settlement (2012): Another complaint from September 2012 alleged breach of fiduciary duties, fraud, and violation of Arizona Securities Law. The case was settled for $14,999, with Calton contributing $10,000 towards the settlement.
Allegations of Broker Misconduct Against Daryl Ray Calton
Daryl Ray Calton has faced the following allegations in customer disputes and regulatory actions:
- Unsuitable Recommendations: Allegations that Calton made investment recommendations that were not appropriate for clients’ financial situations, including investments in REITs and real estate securities.
- Breach of Fiduciary Duty and Fraud: Complaints from clients allege that Calton breached his fiduciary duty and engaged in fraudulent behavior, including in cases involving real estate securities.
- Regulatory Violations: Calton was fined and had his registration suspended for a year by the Arizona Corporation Commission in 1991 for violating Arizona Securities Statutes and failing to update his U4 form on time.
These accusations highlight violations of FINRA Rule 2111, which requires brokers to ensure that investment recommendations are suitable for their clients.
FINRA Rule 2111, the Suitability Rule, requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s financial situation, needs, and investment profile. This rule covers the three key obligations: reasonable-basis suitability (the recommendation must be suitable for at least some investors), customer-specific suitability (the recommendation must be appropriate for that particular customer), and quantitative suitability (ensuring that the number of recommended transactions is not excessive). Related rules include FINRA Rule 2090, the Know Your Customer Rule, which mandates that brokers understand their clients’ investment profiles to provide suitable advice.
Broker Experience Summary
Daryl Ray Calton (CRD #1002304) has been active in the financial services industry for several decades, most recently working with Calton & Associates, Inc. in Mesa, Arizona. Over the course of his career, Calton has been associated with multiple firms and has passed significant industry exams, such as the Series 7 – General Securities Representative Exam and the Series 24 – General Securities Principal Exam, enabling him to provide both brokerage and advisory services. Throughout his career, he has held registrations with numerous firms, including FSC Securities Corporation and Summit Brokerage Services, Inc.
Calton has been registered in several states, including Arizona, California, and Colorado, during his career. However, his professional record has been impacted by multiple customer disputes, regulatory actions, and allegations of misconduct.
Negative Disclosures and Customer Disputes
Daryl Ray Calton has been involved in several customer disputes and regulatory actions throughout his career, with some cases still pending:
- Pending Complaint (2023): A client alleges unsuitable recommendations related to real estate securities, seeking $236,200 in damages. The case is pending in Superior Court of Arizona, Maricopa County (Docket #CV2023-011525).
- Settlement (2024): A customer filed a complaint in March 2024, alleging unsuitable investments in REITs. The case was settled for $12,250 (FINRA Docket #24-00658).
- Settlement (2012): A complaint from September 2012 alleged breach of fiduciary duties, fraud, and violation of Arizona Securities Law. The case was settled for $14,999, with Calton contributing $10,000.
- Regulatory Action (1991): Calton was fined and his registration suspended for a year by the Arizona Corporation Commission for violating Arizona Securities Statutes and failing to update his U4 form on time.
Allegations and Accusations
Daryl Ray Calton has faced several allegations throughout his career, including:
- Unsuitable Investment Recommendations: Calton has been accused of recommending investment products, such as REITs and real estate securities, that were not suitable for his clients’ financial needs or risk tolerance.
- Breach of Fiduciary Duty and Fraud: He has also faced accusations of breaching fiduciary duty and committing fraud, particularly in relation to real estate securities, which resulted in financial losses for his clients.
- Regulatory Violations: Calton was penalized by the Arizona Corporation Commission for violations of Arizona Securities Statutes, including failing to properly update his registration information in a timely manner.
These allegations highlight concerns over his adherence to FINRA Rule 2111, which governs the suitability of investment recommendations made by brokers.
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Daryl Ray Calton or have a question about the performance of your account, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Our cases are handled on a contingency basis. We don’t get paid unless we win for you.
