November 1, 2021 Comments Off on FINRA Complaint: Cantone Research Inc. Allegedly Misrepresented Quad Cities Bonds   Blog, Current Investigations

FINRA Complaint: Cantone Research Inc. Allegedly Misrepresented Quad Cities Bonds  

FINRA Complaint: Cantone Research Allegedly Misrepresented Quad Cities Bonds, featured by top securities fraud attorneys, The White Law Group

Quad Cities Municipal Revenue Bonds Investment Losses  

Are you concerned about investment losses in Quad Cities Municipal Revenue Bonds? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.  

According to a FINRA complaint filed on October 26, 2021, the regulator has charged registered broker dealer Cantone Research Inc. (CRD # 26314), its president and two representatives with allegedly negligent misrepresentations and omissions of material fact in connection with two municipal bond offerings. The respondents purportedly recommended and sold two bonds, the Quad Cities Municipal Revenue Bonds and the Montgomery 2015 Municipal Revenue Bonds to more than 150 Cantone Research customers, according to FINRA.  FINRA further claims that both bonds reportedly defaulted and consequently close to 150 Cantone Research customers lost more than $6,225,000.   

FINRA alleges that the representatives made negligent misrepresentations and omissions of material fact in connection with the underwriting and sale of $2,200,000 worth of municipal revenue bonds in an offering for the Quad Cities Regional Economic Development Authority First Mortgage Revenue Bonds (Quad Cities Bonds). The Quad Cities Bonds were reportedly issued to fund the purchase and rehabilitation of a dormitory at Sauk Valley Community College, a two-year community college in Illinois, according to FINRA. The complaint further alleges that the Quad Cities Bonds were conduit bonds, meaning that the bonds were not backed by the faith and credit of any state or municipality, according to FINRA. Therefore, if the dormitory failed to generate revenue in excess of its operating expenses, then investors allegedly faced losses.   

The complaint also alleges that Cantone Research, purportedly as the sole underwriter of the Quad Cities Bond offering, rushed through the due diligence process in less than three weeks.   

Negligent Misrepresentations

FINRA further alleges that Cantone Research made negligent misrepresentations to investors, including “optimistic financial projections but failed to disclose material information calling those projections into question.”  

The White Law Group is investigating the liability that Cantone Research may have for selling Quad Cities Municipal Revenue Bonds to clients.  Brokerage firms are required to perform adequate due diligence on any investment they recommend and to adequately disclose the risks of any investment.  Additionally, brokerage firms are required to ensure that all investment recommendations made are suitable in light of the client’s age, investment experience, investment objectives, net worth, and income.  

If it can be demonstrated that a brokerage firm failed to perform adequate due diligence, to properly disclose the risks, or recommended an investment unsuitably, the firm may be held responsible for any resulting losses in a FINRA arbitration claim.  

Free Consultation  with a Securities Attorney

If you suffered losses invested in Quad Cities Municipal Revenue Bonds or Montgomery 2015 Municipal Revenue Bonds and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.  

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 Seattle, Washington.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.  

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com 

 

 

 

Comments are closed.