Matthew Bahrenburg, CFD Investments Inc., Kokomo, IN
FINRA Reportedly Sanctions CFD Investments & Broker Matthew Bahrenburg for Misconduct related to Payson Petroleum investments
According to the Financial Industry Regulatory Authority (FINRA), the regulator has sanctioned CFD Investments and affiliated broker Matthew Bahrenburg for alleged rules violations in connection with a private placement investment, Payson Petroleum.
In November 2014, CFD and Bahrenburg, purportedly approved an oil and gas private placement offering for sale to its customers. The issuer, Payson Petroleum, Inc. was the subject of an April 2014 jury verdict in excess of $9 million and was in financial distress, according to a Letter of Acceptance Waiver & Consent (AWC).
From March 2015 to February 2016, CFD reportedly sold interests in Payson to 31 of its retail customers, without conducting reasonable due diligence into the Payson offering. CFD and Bahrenburg allegedly violated FINRA rules by failing to conduct reasonable due diligence into the Payson offering. Further, CFD sold interests in Payson to its customers without having a reasonable basis for making recommendations to purchase this private placement. CFD customers who invested in Payson lost their investments when Payson filed for bankruptcy in 2016.
According to the AWC, CFD also purportedly failed to disclose to its customers that it received additional compensation from Payson beyond the disclosed sales compensation.
The firm consented to a censure and a forty five (45) calendar day suspension of any and all private placement activities and partial restitution to affected customers in the total amount of $750,000.
Matthew Bahrenburg consents forty-five (45) calendar day suspension from association with any FINRA member at any time and a $5,000 fine.
Filing a Complaint against your Brokerage Firm
When brokers abuse client accounts or conduct transactions that violate securities laws, such as selling away or making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you are concerned about investments with Matthew Bahrenburg and CFD Investments, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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