Nationally recognized Springfield financial consultant Nadia Cavner is fighting for the ability to sell securities following her April 12 guilty plea to a felony interstate stalking charge.
According to U.S. securities regulations, a felony would statutorily disqualify Cavner from selling securities in the U.S. for 10 years. Financial Industry Regulatory Authority spokeswoman Michelle Ong said financial advisers are obligated to report criminal actions involving felonies to securities regulators, but licenses are not pulled until full review by the independent board.
Steven Farese Sr., a Tennessee attorney representing Cavner in the case, said he is working with regulators on Cavner’s behalf to ensure that she can continue to manage some $490 million for roughly 1,100 household clients through the Nadia Cavner Group at BancorpSouth Investment Services.
Farese said his arguments would rest on the personal nature of the stalking charge – surrounding intentions to injure, harass or intimidate her daughter’s ex-boyfriend.
“Normally, in the industry, if someone was convicted of a felony dealing with money or handling clients’ accounts or something, they would be out,” he said. “It had to do with her family. It had absolutely nothing to do with her business.”
Disclosure of the felony plea is required through the Investment Adviser Registration Depository, an electronic filing system for investment advisers sponsored by the Securities and Exchange Commission and North American Securities Administrators Association, with FINRA serving as the developer and operator of the system, according to the Missouri secretary of state’s website.
According to Ong, Cavner is obligated to disclose to FINRA both the felony charge and the plea agreement within 30 days of charges being filed or the agreement being signed.
According to a broker search on
FINRA.org, Cavner has three disclosure events involving customer complaints dating back to 2002, and all complaints were investigated and denied. Disclosures related to the stalking charges and plea agreement have not been posted, and Ong said she was not aware if FINRA had received a statement from Cavner as of April 18. She said Cavner could appeal the statutory disqualification to FINRA and would maintain her Series 7 registration until the review process is complete.
Cavner declined a request for an interview, referring all questions to Farese.
According to
NadiaCavnerGroup.com, Franklin Templeton Investments has ranked Cavner No. 1 in its banking division worldwide for 12 years in a row. Barron’s 2012 Top Advisor Rankings positions Cavner at No. 11 in Missouri and as the state’s top female adviser, noting her client’s typical net worth is $2 million, according to Springfield Business Journal archives.
Franklin Templeton Investments did not respond to requests for comment by press time.
Randy Burchfield, BancorpSouth senior vice president of corporate communications, declined to comment on the case or Cavner’s status with BancorpSouth.
According to court records, Cavner was accused with intending to injure, harass or intimidate her daughter Maral’s ex-boyfriend, his new girlfriend or a member of the immediate family of both from July 9, 2011, to Nov. 15, 2011. Cavner was accused of stalking and harassment by multiple means in open court, including: making and causing others to make harassing and defamatory phone calls; leaving anonymous notes to harass and intimidate the victims; having the victims followed; hiring individuals to disrupt the relationship of the victims; and paying for an associate to move to Memphis temporarily for the purpose of surveilling the victims.
Farese said there was nothing extraordinary about the breakup between Cavner’s daughter and her boyfriend.
“Was there anything extra egregious about it? No, but one has to understand this is Mrs. Cavner’s only daughter, and each individual handles these things differently as a parent,” Farese said. “I’m not saying parents should do anything to the ex-boyfriend or girlfriend of their child, but it causes hard feelings.”
Cavner’s sentencing is scheduled Aug. 1. Farese said, as part of the plea deal, prosecutors have recommended Cavner receive probation, the length of which is entirely up to the judge.
Cavner has led the Nadia Cavner Group since 2005 and serves as an adviser with Cambridge Investment Research, the brokerage arm of BancorpSouth in Springfield, according to NadiaCavnerGroup.com. Representatives from California-based Cambridge Investment Research also did not return requests for comment.
Cavner’s firm – formerly known as The Nadia Cavner Group at The Signature Bank Investment Services – was included in a 2007 merger with BancorpSouth.
The consultant has been in trouble in the past with a former employer. U.S. Bancorp sued Cavner, along with four of her employees, after they left the company to join The Signature Bank. The suit alleged the employees illegally used confidential client lists – photocopied during summer 2005 by interns and staff at off-site locations – to lure away her former U.S. Bancorp clients. The two-year suit was dismissed in late 2007, weeks before trial, according to SBJ archives.
As Cavner works to maintain her business, Farese said via email she has received messages of support from friends and family in recent days: “Nadia and her family have been overwhelmed by the love and kindness shown by her clients and friends during this difficult time.”
In December, Cavner was selected by SBJ editors as one of its 12 People You Need to Know in 2013. Cavner is scheduled as the
May 21 guest at Hilton Garden Inn to answer questions from SBJ Editor Eric Olson in front of a live audience.[[In-content Ad]]
