Christopher Cacace

From May 2017 to November 2019, the Department of Enforcement alleges that Christopher Cacace, the Chief Compliance Officer at SW Financial (SWF), failed to properly supervise the firm’s registered representatives (RRs). During this period, these RRs engaged in excessive and unsuitable trading across multiple customer accounts, resulting in high costs and significant customer losses. Notably, one RR excessively traded and churned a customer’s account, while others engaged in similar practices across 11 additional accounts. Despite numerous red flags, including high turnover rates and regulatory issues with the RRs, Cacace did not take appropriate action to limit or address the problematic trading. This oversight led to customer losses totaling $709,444 and commissions of $546,855 for SWF and the RRs. Cacace’s lack of adequate supervision violated FINRA Rules 3110 and 2010.