Montpelier, VT – Commissioner Kevin Gaffney announced the approval of payments from the Department of Financial Regulation’s (DFR) Victim Restitution Fund (“Fund”) to 21 investors who lost significant portions of their retirement savings due to their investment adviser’s misconduct.
 
The Department brought an enforcement action and obtained an Order against Thomas M. Chadwick, Chadwick & D’Amato, LLC, and Chadwick Consulting, LLC (“Chadwick”) for violating fiduciary duties to clients and investing in unsuitable, high-risk products. DFR ordered Chadwick to pay restitution to Vermonters in the amount of $1,652,708,61. Chadwick, however, has failed to pay the victims to date.
 
“Chadwick’s former clients lost their hard-earned retirement savings," Commissioner Gaffney said. "We are pleased that we can offer victims some assistance to offset their financial losses."

Established in 2019, the Fund allows the Department to pay victims of securities violations a portion of their losses when restitution was ordered and not paid by the respondent. Per statute, awards are limited to the lesser of $25,000 or 25% of the unpaid restitution. If the victim meets the definition of a vulnerable person (a person who meets the definition of vulnerable person under 33 V.S.A. 6902(34); or a person who is at least 60 years of age) the maximum award from the Fund shall be the lesser of $50,000 or 50% of the amount of unpaid restitution. Monies in the Fund are derived from settlements in DFR enforcement cases.
 
Through the Fund, DFR awarded 21 victims a total of $339,325.00. The Department will continue to seek the remaining restitution from Chadwick.
 
If you believe you have been a victim of a securities violation, please contact DFR at 802-828-3420, or dfr.securitiesinfo@vermont.gov. 

• The Vermont Department of Financial Regulation urges Vermonters to research securities professionals, such as an investment adviser, before engaging in business with FINRA’s BrokerCheck tool.  
• Additionally, investors should regularly monitor their securities portfolios and discuss any questions with their financial adviser.
• If you suspect your investment adviser or broker-dealer might have engaged in misconduct, please file a complaint with the Securities Division.

The Department thanks the NH Bureau of Securities for its assistance with this investigation.