March, 2025 | Based in New York, NY
Have you suffered financial losses while working with broker Carlton Perry Fletcher? You may be entitled to compensation. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
Essential Information About Carlton Perry Fletcher
- Full Name: Carlton Perry Fletcher
- CRD Number: 2455798
- Current Location: New York, NY
- Current Status: Not currently registered
- Previous Employers:
- Dinosaur Financial Group, L.L.C (01/2010 – 04/2024)
- McGinn, Smith & Co., Inc. (06/2002 – 12/2009)
- P. Turner & Company, L.L.C. (07/2001 – 06/2002)
- Various other brokerage firms dating back to 1994
- Disclosure Events: 3 Regulatory Events, 1 Criminal Event, 1 Civil Event, 1 Customer Dispute
- Recent Regulatory Action: Barred by FINRA (01/2024) after refusing to provide information in connection with an investigation into allegations of converting client funds
- Ability to Recover Losses: Potential for recovery through FINRA arbitration for affected investors
The Troubling Case of Carlton Perry Fletcher: A Financial Advisor Under Scrutiny
In the complex world of investment securities, trust is the foundation of the advisor-client relationship. When that trust is broken, investors can suffer significant financial and emotional damage. Such appears to be the case with Carlton Perry Fletcher, a former financial advisor who has recently been barred from the industry amid serious allegations of misconduct.
This article examines the allegations against Fletcher, his professional history, and the legal options available to investors who may have suffered losses while working with him.
Detailed Case Overview: FINRA’s Investigation and Permanent Bar
On January 24, 2025, the Financial Industry Regulatory Authority (FINRA) took decisive action against Carlton Perry Fletcher, permanently barring him from the securities industry. This severe sanction came after Fletcher refused to provide information and documents requested by FINRA in connection with an investigation into allegations that he had converted funds belonging to an individual.
The bar, formalized through an Acceptance, Waiver & Consent (AWC) agreement, prevents Fletcher from associating with any FINRA member firm in any capacity, effectively ending his career in the securities industry. While Fletcher did not admit or deny the findings, his refusal to cooperate with FINRA’s investigation raised serious red flags about his conduct.
This latest regulatory action represents a culmination of a career marked by multiple disciplinary events, including previous regulatory violations, a criminal event, a civil event, and a customer dispute resulting in an arbitration award against him.
Historical and Background Information: A Career Marred by Controversy
Fletcher’s securities industry career began in 1994 when he passed the General Securities Representative Examination (Series 7) and the Uniform Securities Agent State Law Examination (Series 63). Over the next three decades, he worked for several brokerage firms, but his employment history shows a pattern of relatively short tenures at multiple firms, which can sometimes be an indicator of problematic conduct.
His most recent employment was with Dinosaur Financial Group, L.L.C., where he worked from January 2010 until April 2024. Prior to that, he was employed at McGinn, Smith & Co., Inc. from June 2002 to December 2009.
Fletcher’s BrokerCheck report reveals a troubling history of disciplinary actions:
- 2001 NASD Action – Fletcher was suspended for 10 business days, fined $5,000, and ordered to pay $800 in restitution for exercising discretion in customer accounts without prior written authorization from the customers and without having the accounts accepted in writing as discretionary by his member firm.
- 2000 Utah Division of Securities Action – Fletcher faced actions from the Utah Division of Securities related to alleged violations of the Utah Uniform Securities Act. He ultimately paid a fine of $500 and $1,307.50 in restitution to a customer, and agreed not to apply for licensing in the state of Utah.
- 2000 Customer Dispute – A customer filed an arbitration claim alleging unauthorized trading. This resulted in an award of $10,000 in compensatory damages to the customer.
- 1975 Criminal Matter – Fletcher also has a criminal disclosure on his record from 1975 related to “theft of services” for which he pled guilty to a conditional discharge.
This pattern of regulatory issues, spanning decades, suggests a persistent disregard for securities regulations and customer interests.
Red Flags & Warning Signs: How to Identify Broker Misconduct
The Fletcher case illustrates several red flags that investors should watch for when working with any financial advisor. Being able to recognize these warning signs early can help protect your investments and financial wellbeing.
1. Conversion of Funds
The most serious allegation against Fletcher in the recent FINRA action involves the conversion of client funds—essentially taking a client’s money for personal use. This represents one of the most egregious violations of the broker-client relationship and is expressly prohibited by FINRA Rule 2150.
Warning Sign: Unexplained withdrawals from your account, missing funds, or discrepancies between your statements and what your advisor reports to you.
2. Unauthorized Trading
Fletcher’s history includes a customer dispute and regulatory action related to unauthorized trading—executing trades in a client’s account without proper authorization.
Warning Sign: Transactions appearing in your account that you did not approve, or a pattern of trading that doesn’t align with your documented investment objectives.
3. Discretionary Authority Violations
The 2001 NASD action against Fletcher specifically cited violations related to exercising discretion without proper authorization.
Warning Sign: Your advisor making decisions about buying or selling securities without consulting you, despite not having formal written discretionary authority.
4. Regulatory Disclosure History
Multiple regulatory actions across different jurisdictions, as seen in Fletcher’s case, represent a significant concern.
Warning Sign: A pattern of disciplinary actions or customer complaints visible on an advisor’s BrokerCheck report.
5. Refusal to Provide Information
Fletcher’s permanent bar resulted from his refusal to cooperate with FINRA’s investigation—a violation of FINRA Rule 8210, which requires associated persons to provide information when requested.
Warning Sign: Evasiveness when answering direct questions about your investments or reluctance to provide documentation of transactions.
Legal & Regulatory Framework: The Rules That Protect Investors
Several FINRA rules and securities regulations were potentially violated in the Fletcher case:
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
This foundational rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Conversion of client funds represents a clear violation of this rule.
FINRA Rule 8210: Provision of Information and Testimony
This rule authorizes FINRA to require associated persons to provide information related to an investigation. Fletcher’s refusal to provide requested information violated this rule, leading to his permanent bar.
FINRA Rule 2150: Improper Use of Customers’ Securities or Funds
This rule prohibits members or associated persons from making improper use of a customer’s securities or funds.
FINRA Rule 2111: Suitability
While not explicitly mentioned in Fletcher’s most recent action, unauthorized trading often involves suitability violations, as the trades may not align with the customer’s investment objectives, financial situation, or needs.
FINRA Rule 3260: Discretionary Accounts
This rule establishes requirements for discretionary authority, including obtaining prior written authorization from the customer and acceptance by the firm. Fletcher’s previous disciplinary action cited violations related to discretionary trading.
FINRA Rule 3110: Supervision
This rule requires firms to establish and maintain a system to supervise the activities of their associated persons. Fletcher’s conduct raises questions about the supervision he received at his employing firms.
Guidance for Affected Investors: Steps to Take If You Worked with Fletcher
If you were a client of Carlton Perry Fletcher and believe you may have been harmed by his actions, there are several steps you should take:
1. Review Your Account Statements and Documentation
Carefully examine all account statements, confirmations, and other communications from the time you worked with Fletcher. Look for:
- Unauthorized transactions
- Unexplained withdrawals or transfers
- Investments that don’t match your stated objectives
- Performance that significantly trails appropriate benchmarks
2. Request Your Complete Account Records
You have a right to receive copies of all documents you signed and complete records of your account activity. Request these from the brokerage firm where Fletcher was employed when handling your account.
3. Understand the Statute of Limitations
FINRA arbitration claims generally must be filed within six years of the event giving rise to the claim. Don’t delay in investigating potential misconduct, as waiting too long could forfeit your right to seek recovery.
4. Consider Working with a Specialized Attorney
Investment fraud attorneys who specialize in FINRA arbitrations understand the complexities of securities regulations and can help determine if you have a viable claim. Most offer free initial consultations to evaluate your case.
5. File a Complaint with Regulators
Even if you decide not to pursue arbitration, filing a complaint with FINRA and your state securities regulator can help protect other investors by alerting authorities to potential ongoing misconduct.
Investment Fraud Attorney Services: How We Can Help
Our law firm specializes in representing investors who have suffered losses due to broker misconduct. In cases like the Fletcher matter, we offer comprehensive legal services designed to help you recover your losses.
Detailed Forensic Account Analysis
Our team conducts thorough forensic analyses of your investment accounts to identify potential misconduct, quantify losses, and build a compelling case. We look for patterns of:
- Unauthorized trading
- Excessive trading (churning)
- Unsuitable investment recommendations
- Misrepresentations or omissions of material facts
- Conversion of funds or securities
FINRA Arbitration Representation
Most investment disputes are resolved through FINRA arbitration rather than in court. Our attorneys have extensive experience navigating this specialized forum, including:
- Filing Statement of Claim
- Discovery process
- Prehearing conferences
- Arbitration hearing preparation and representation
- Settlement negotiations
Contingency Fee Structure
We understand that you’ve already suffered financial loss, which is why we handle investment fraud cases on a contingency fee basis. This means:
- No upfront legal fees
- No fees unless we recover money for you
- Fees calculated as a percentage of your recovery
Accessing Additional Recovery Options
In addition to pursuing claims against the individual broker, we explore all potential avenues for recovery, including:
- Claims against the brokerage firm for failure to supervise
- Insurance coverage that may apply to your losses
- Securities Investor Protection Corporation (SIPC) coverage if applicable
Don’t bear the burden of investment losses caused by broker misconduct alone. Take action today to protect your financial future. Call 800-950-6553 or complete our online form form to schedule your free, no-obligation case evaluation with an experienced investment fraud attorney.
