CASEY ARUNDEL Investment Fraud Investigation: Unauthorized Trading and Disclosure Issues

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Investment Fraud Alert: Casey Arundel Terminated for Unauthorized Trading

Investors who worked with financial advisor Casey Arundel (CRD# 4925418) should be aware of troubling misconduct allegations that led to his termination from UBS Financial Services in November 2024. According to FINRA BrokerCheck records, Arundel was discharged after review determined that he “traded without authorization in client accounts and was not forthcoming” during the investigation.

Arundel recently registered with Arkadios Capital (CRD# 282710) and Arkadios Wealth Advisors (CRD# 288863) in February 2025, shortly after his termination from UBS. This quick transition raises concerns about whether his new clients are fully aware of his disciplinary history and the serious nature of the allegations against him.

Understanding the Severity of Unauthorized Trading

Unauthorized trading represents one of the most serious breaches of trust in the broker-client relationship. When financial advisors like Casey Arundel execute trades without proper client authorization, they violate fundamental securities regulations and their fiduciary duty to act in their clients’ best interests.

The FINRA BrokerCheck report indicates that Arundel’s unauthorized trading specifically involved mutual funds, which can have significant implications for investors:

1. Fee-Related Issues: Unauthorized mutual fund transactions may generate unnecessary transaction fees and sales charges
2. Tax Consequences: Unwanted trades can trigger unexpected capital gains tax liabilities
3. Unsuitable Investments: Transactions made without client input often fail to align with the investor’s stated goals and risk tolerance
4. Violation of Trust: Perhaps most significantly, unauthorized trading fundamentally violates the trust placed in a financial advisor

Compounding Factors: Lack of Candor

The FINRA report notes that Arundel “was not forthcoming” during UBS’s investigation into his activities. This lack of transparency represents an additional red flag regarding his conduct as a financial professional. When confronted with allegations of misconduct, financial advisors are expected to cooperate fully with investigations. Failure to be forthcoming can indicate an attempt to conceal wrongdoing and often results in more severe disciplinary actions.

Casey Arundel’s Professional Background

Prior to his current registration with Arkadios Capital and Arkadios Wealth Advisors in Atlanta, GA, Casey Arundel’s employment history includes:

• UBS Financial Services Inc. (CRD# 8174): May 2015 to December 2024
• Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691): February 2014 to May 2015
• LPL Financial LLC (CRD# 6413): October 2013 to February 2014

Arundel has passed several industry examinations, including:

• Securities Industry Essentials Examination (SIE)
• Futures Managed Funds Examination (Series 31)
• General Securities Representative Examination (Series 7)
• Uniform Combined State Law Examination (Series 66)

He is currently registered in 18 U.S. states and territories but notably has not obtained any Principal/Supervisory Examinations, which would be required for supervisory positions in the securities industry.

Red Flags for Investors: Understanding the Disclosure Event

Disclosure events in a broker’s record provide crucial information for investors evaluating a financial advisor’s trustworthiness and professional conduct. Casey Arundel’s record now includes a significant termination disclosure, which should prompt careful consideration by current and prospective clients.

The Termination Disclosure Explained

According to FINRA BrokerCheck, Arundel was discharged from UBS Financial Services Inc. on November 11, 2024, after the firm’s review determined that he traded without authorization in client accounts and was not forthcoming during the investigation. Specifically, the unauthorized trading involved mutual fund products.

This type of disclosure falls under the category of “Employment Separation After Allegations,” which FINRA defines as a situation where the broker was discharged after being accused of:

1. Violating investment-related statutes, regulations, rules, or industry standards of conduct
2. Fraud or the wrongful taking of property
3. Failure to supervise in connection with investment-related statutes, regulations, rules, or industry standards of conduct

The Timing of Employment Transitions

The timing of Arundel’s employment transitions raises additional concerns. According to FINRA BrokerCheck:

• Terminated from UBS Financial Services: November 11, 2024
• Registered with Arkadios Capital: February 18, 2025
• Registered with Arkadios Wealth Advisors: February 20, 2025

This quick transition – approximately three months after termination for serious misconduct – raises questions about whether Arundel fully disclosed the circumstances of his departure from UBS to his new employers and clients. It also highlights the importance of investors conducting their own due diligence rather than relying solely on advisor representations.

The Impact of Unauthorized Trading on Investors

Investors who experienced unauthorized trading in their accounts by Casey Arundel may have suffered various forms of financial harm:

1. Direct Financial Losses

Unauthorized mutual fund trades can lead to immediate financial losses when:

• Trades are executed at inopportune market times
• Higher-fee fund options are selected over more cost-effective alternatives
• Transactions incur unnecessary sales charges or commissions
• Frequent trading generates excessive transaction fees

2. Tax Consequences

Unauthorized mutual fund transactions can create unexpected tax liabilities through:

• Short-term capital gains that are taxed at higher rates than long-term gains
• Year-end distributions that create tax consequences the investor wasn’t prepared for
• Tax-inefficient trading strategies that fail to consider the investor’s overall tax situation

3. Portfolio Misalignment

When a broker executes trades without authorization, the resulting portfolio may:

• No longer align with the investor’s stated risk tolerance
• Diverge from the agreed-upon investment strategy
• Contain inappropriate asset allocations for the investor’s goals
• Lack proper diversification or contain unsuitable concentration in certain sectors

4. Emotional and Trust Impacts

Beyond financial harm, unauthorized trading causes significant non-monetary damages:

• Breach of fiduciary duty and trust
• Anxiety and stress about financial security
• Time and effort required to identify and address unauthorized activity
• Ongoing concerns about whether other improprieties occurred

Other Business Activities and Potential Conflicts

The FINRA BrokerCheck report also reveals that Arundel is engaged in outside business activities that current and prospective clients should be aware of:

1. Clover Capital Partners (DBA): Started November 4, 2024 – just days before his termination from UBS. The report indicates Arundel spends 100-160 hours per month on this business during securities trading hours, which represents a substantial time commitment that could potentially impact his availability and attention to clients at Arkadios.
2. GT North Metro Alumni Club: Member of Board of Directors since January 2016, hosting events around GT Sports.

These outside business activities, particularly the significant time devoted to Clover Capital Partners, raise questions about potential conflicts of interest and whether Arundel can dedicate sufficient time to servicing his advisory clients.

Arkadios Firms’ Supervisory Responsibilities

Brokerage and advisory firms have a legal obligation to supervise their registered representatives. Arkadios Capital and Arkadios Wealth Advisors, as Arundel’s current employers, have a responsibility to:

1. Conduct thorough pre-employment screening
2. Implement heightened supervision when hiring representatives with disciplinary history
3. Monitor trading activity to prevent unauthorized transactions
4. Ensure proper disclosure of outside business activities
5. Verify that clients receive complete information about their financial advisor’s background

Given Arundel’s recent termination for unauthorized trading, questions arise about what additional supervisory measures Arkadios has implemented to protect clients and prevent similar misconduct.

Steps for Investors Who Worked with Casey Arundel

If you were or are a client of Casey Arundel, particularly during his tenure at UBS Financial Services from May 2015 to November 2024, there are several important steps you should consider taking:

1. Review Your Account Statements

Carefully examine your account statements for:

• Transactions you don’t recognize or remember authorizing
• Unusual trading patterns or increased trading activity
• Unexpected mutual fund switches or exchanges
• Fees or charges that seem excessive or unexplained

2. Request Account Documentation

You have the right to request:

• Complete transaction histories for your accounts
• Copies of new account forms and investment objective documentation
• Records of communications with your broker
• Fee disclosures and other account-related documents

3. Consider Legal Recovery Options

If you identify unauthorized transactions or other misconduct, several recovery avenues exist:

FINRA Arbitration

Most brokerage agreements contain mandatory arbitration clauses requiring disputes to be resolved through FINRA’s arbitration process rather than court. FINRA arbitration offers:

• A typically faster resolution than traditional litigation
• Lower costs than court proceedings
• Arbitrators with securities industry knowledge
• The ability to recover actual damages, interest, and potentially punitive damages

Securities Class Actions

In cases where many investors suffered similar harm from unauthorized trading practices, class action litigation might be appropriate. This approach allows investors to:

• Pool resources for more efficient legal representation
• Address systematic misconduct affecting numerous clients
• Pursue recovery even when individual damages might not justify separate actions

Regulatory Complaints

Filing complaints with regulatory authorities such as FINRA and the SEC can help:

• Create an official record of the alleged misconduct
• Potentially trigger regulatory investigations
• Protect other investors from similar harm
• Support subsequent recovery efforts

Legal Remedies for Unauthorized Trading

Investors who suffered losses due to Casey Arundel’s alleged unauthorized trading may be entitled to various forms of recovery:

1. Rescission

Rescission effectively “unwinds” unauthorized transactions by:

• Returning the investor to their financial position before the unauthorized trading
• Canceling the transactions as if they never occurred
• Restoring the original portfolio positions when possible

2. Actual Damages

Investors can pursue recovery of:

• Direct financial losses from unauthorized trades
• Market opportunity losses (gains that would have been realized had the unauthorized trading not occurred)
• Excess fees, commissions, and costs generated by unauthorized activity
• Tax liabilities and other financial consequences caused by the misconduct

3. Consequential Damages

In some cases, investors may recover:

• Costs associated with tax preparation or accounting services needed to address consequences
• Interest on losses from the date of the unauthorized transactions
• Expenses directly related to discovering and addressing the unauthorized activity

4. Punitive Damages

In particularly egregious cases involving fraud or intentional misconduct, arbitrators or courts may award:

• Punitive damages to punish the wrongdoer
• Statutory damages provided by state securities laws
• Attorney’s fees and costs

Time Limitations for Investment Fraud Claims

Investors should be aware that strict time limitations apply to investment-related claims:

• FINRA Arbitration: Claims generally must be filed within six years from the time of the events giving rise to the dispute
• State Securities Laws: Many states have statutes of limitation ranging from 1-5 years
• Common Law Claims: Various limitation periods apply depending on the specific legal theory and jurisdiction

Given Arundel’s termination in November 2024, the window for filing claims related to his alleged unauthorized trading remains open, but investors should not delay in seeking legal counsel to evaluate potential claims.

How Our Investment Fraud Attorneys Can Help

Our experienced securities attorneys specialize in representing investors who have suffered losses due to broker misconduct, including unauthorized trading. We can:

1. Conduct a Comprehensive Account Analysis
   
   • Review all account statements and transaction histories
   • Identify potentially unauthorized or problematic trades
   • Calculate financial damages from improper activity
   • Assess suitability issues and potential fiduciary breaches
2. Develop and Execute Recovery Strategies
   
   • Determine optimal legal approaches based on your specific situation
   • Prepare and file FINRA arbitration claims when appropriate
   • Negotiate with brokerage firms for potential settlements
   • Represent you throughout the dispute resolution process
3. Navigate Complex Securities Regulations
   
   • Apply relevant FINRA rules and securities regulations to your case
   • Identify all potential legal claims and recovery theories
   • Ensure compliance with procedural requirements and deadlines
   • Leverage industry knowledge to build compelling cases
4. Protect Your Financial Future
   
   • Advise on measures to secure your remaining investments
   • Provide guidance on avoiding similar issues with future advisors
   • Help restore financial security after investment losses
   • Ensure all recoverable damages are identified and pursued

Conclusion: Protecting Your Financial Future

Casey Arundel’s termination from UBS Financial Services for unauthorized trading and lack of forthcoming behavior during the investigation represents serious misconduct that current and prospective clients should carefully consider. His quick transition to Arkadios Capital and Arkadios Wealth Advisors raises additional concerns about proper disclosure and supervision.

If you invested with Casey Arundel, particularly during his tenure at UBS from 2015 to 2024, reviewing your accounts for potential unauthorized trading is crucial. The allegations against Arundel suggest a fundamental breach of the trust and fiduciary duties that form the foundation of the broker-client relationship.

Our experienced investment fraud attorneys have successfully represented numerous investors who suffered losses due to unauthorized trading and other forms of broker misconduct. We understand the complex legal and regulatory framework governing these cases and can help you pursue the recovery you deserve.

Don’t wait to explore your legal options. Contact us today for a confidential, no-obligation consultation to evaluate your potential claims and discuss strategies for protecting your financial interests.

Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.