FINRA Reportedly Bars Lynn Cawthorne after Alleged Felony Charges
According to the Financial Industry Regulatory Authority (FINRA), the regulator has reportedly barred financial advisor Lynn Cawthorne on November 16, 2020.
A FINRA complaint alleged that Cawthorne 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 that provided nutritious meals to children in low-income areas when school is not in session during the summer, according to FINRA.
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.”
Prior to that, he was affiliated with Investment Professionals, Inc. for three years.
Investigating Potential Lawsuits
Cambridge Investment Research Co. and 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, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
If you suffered investment losses with Lynn Cawthorne and Cambridge Investment Research, Inc., please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.