The White Law Group is investigating potential securities claims involving Cambridge Investment Research Inc. (CRD# 39543, Fairfield, Iowa).
Cambridge Investment Research, a national financial advisory firm headquartered in Fairfield, Iowa, reportedly has 12 disclosure events on its broker record including 8 regulatory events, and 4 arbitrations, according to the Financial Industry Regulatory Authority (FINRA).
March 17, 2021 – Cambridge Investment Research Inc. under investigation in connection with LJM fund Sales
Cambridge Investment Research Inc. is currently under investigation by regulators, according to filings with the Securities and Exchange Commission. The firm is apparently under investigation by the Financial Industry Regulatory Authority (FINRA) in regards to due diligence and supervisory issues in connection with sales of the alternative fund, LJM Preservation and Growth Fund.
LJM Partners Ltd., a now defunct investment firm based in Chicago, took risky bets on stock market swings and closed its doors in February 2018, according to numerous reports.
The White Law Group received numerous calls from investors who lost big in LJM Preservation and Growth Fund, a mutual fund targeted to retail investors which lost half its value earlier that month as volatility in trading spiked, according to numerous reports. The fund then lost most of its remaining value soon after.
December 2019 – FINRA Sanctions Cambridge for Alleged Customer Overcharges and Excess Commissions
Cambridge Investment Research was issued an AWC on December 31, 2019 in which the firm was censured and fined $150,000 after the firm allegedly failed to reasonably supervise short-term trading of UITs and mutual fund Class A shares.
The alleged lack of sufficient guidance to firm principals allowed at least one of its representatives to purportedly engage in unsuitable short-term trading in mutual fund Class A shares.
FINRA’s findings also stated that the firm’s system for monitoring commissions failed. Some of the firm’s representatives apparently executed transactions that allegedly resulted in $17,124 in excess commissions on trades entered by firm representatives, and a single trade in which the commission amount of $25,000 was entered in error.
After FINRA identified these excess commissions, the firm reportedly reimbursed its customers for those charges. The findings also included that the firm failed to identify and apply available breakpoint discounts for eligible customers.
According to the AWC, the firm also reportedly identified multiple transactions that resulted in customer overcharges of $27,849 and reimbursed customers for these commission overcharges.
November 16, 2020 – FINRA Reportedly Bars Cambridge Advisor Lynn Cawthorne after Alleged Felony Charges
The Financial Industry Regulatory Authority (FINRA) reportedly barred ex-Cambridge financial advisor Lynn Cawthorne on November 16, 2020 after he allegedly refused to provide information in connection with an investigation into his purported failure to disclose multiple felony charges and other potential violations.
The complaint alleges that Cawthorne was indicted in the U.S. District Court for the Western District of Louisiana on seven felony counts of wire fraud and one felony count of conspiracy to commit wire fraud in connection with allegedly misappropriating approximately $536,000 from a government program.
FINRA reportedly requested the information to determine, among other things, whether Cawthorne failed to report his indictment and superseding indictment, and whether his related outside business activities and private securities transactions were properly disclosed to his firm or otherwise violated applicable FINRA rules.
According to his broker profile, Cawthorne was reportedly affiliated with Cambridge Investment Research Co. in Shreveport, LA, from 2013 until 2018 when he was reportedly dismissed after he “failed to report ongoing criminal investigation.”
Cambridge Investment Research Inc. Barred Advisors, Lawsuits and Regulatory Actions
Filing a Complaint against your Brokerage Firm
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. 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.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Free Consultation with a Securities Attorney
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
If you have concerns regarding investments you purchased through Cambridge Investment Research Inc. and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.