Alabama Investment Company Barred from Tennessee’s Securities Industry
NASHVILLE – The Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division announces $99,000 in civil penalties and the permanent disbarment of Alabama-based Clearpoint Capital Management, LLC (CCM) from selling securities in Tennessee.
CCM, which lists a current business address of 4513 Old Shell Road, Building 1-B in Mobile, Alabama, was previously cited for allowing former employee and Nashville resident Clarence Andrew (“Cal”) Elcan access to manage accounts or portfolios of CCM’s Tennessee clients while he was banned from using the T.D. Ameritrade trading platform due to previous criminal charges.
A recently approved Final Order imposes financial penalties as well as barring CCM in the future from conducting securities transactions from, in, or into the State of Tennessee and barring them from any activity as broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative conducting securities transactions on behalf of others from, in, or into the State of Tennessee.
CCM knew or should have known Elcan was not registered as an investment adviser representative as required by Tennessee law and that T.D. Ameritrade would not allow Elcan access on its trading platform. By allowing Elcan to use the names, access numbers, and passwords of other CCM employees, investigators found Elcan and CMM employed a deceptive course of business to deprive T.D. Ameritrade of the ability to enforce the ban against Elcan.
“TDCI’s mission is the protection of Tennessee investors from fraudulent and deceptive activity,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “We will continue to identify and investigate those found breaking the state’s security laws. We urge consumers to contact us if they believe they have been the victim of fraud.”
Tennesseans are encouraged to visit TDCI’s website where they can inspect disciplinary actions and verify licenses of securities and insurance professionals.
If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial Services Investigations Unit at (615) 741-5900. To file a complaint online, visit wwww.tn.gov/commerce/article/securities-file-a-complaint.