Did Cambridge Investment Research, Inc. Cause You Investment Losses?
Cambridge Investment Research, Inc. submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which they were censured, fined $400,000, ordered to pay $3,134,354.82 in restitution to customers and required to establish and implement policies, procedures, and internal controls. The sanctions were based on findings that Cambridge allegedly failed to reasonably supervise representatives’ recommendations and lacked a reasonable supervisory system in violation of NASD Rule 3010 and FINRA Rules 3110 and 2010.
Cambridge, which became a FINRA member firm in 1995, is headquartered in Fairfield, Iowa and has approximately 4,400 registered representatives and 2,500 branch offices throughout the United States. According to FINRA findings, Cambridge allegedly failed to reasonably supervise its registered representatives recommendations of a mutual fund, LJM Preservation & Growth Fund (LJM) and permitted the sale of the funds. The findings state that Cambridge representatives sold more than $18 million in the mutual fund to customers without conducting reasonable due diligence and without a sufficient understanding of its risks and features, including that the fund pursued a risky strategy. The FINRA findings further state that the fund eventually liquidated and closed after an extreme volatility event which caused the value to drop 80 percent, resulting in millions of dollars in losses for the customers.
NASD Rule 3010 and its successor, FINRA Rule 3110, set forth FINRA members’ supervisory obligations. Subsection (a) requires that each member shall establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable NASD and FINRA Rules. Subsection (b) requires that each member shall establish, maintain, and enforce written procedures to supervise the types of business in which it engages and the activities of its associated persons that are reasonably designed to achieve compliance with applicable securities laws and regulations, and with the applicable NASD and FINRA Rules. Violations of FINRA Rule 3110 and NASD Rule 3010 also constitute violations of FINRA Rule 2010.
Do You Need an Iowa Attorney for a Mutual Fund Investment Dispute?
Are you a Fairfield, Iowa investor who has suffered significant losses in your stock brokerage and investment accounts? Did your Iowa stockbroker or investment advisor misrepresent or mislead you about a Mutual Fund investment or make an unsuitable recommendation that you invest in a Mutual Fund or otherwise mismanage your investment account? If so, you will need to have representation from an experienced, highly rated, and nationally recognized FINRA securities arbitration law attorney—an attorney who understands Mutual Fund investments and stockbroker abuses such as when they are making unsuitable investments in Class A, B, or C shares of other classes of mutual funds to increase their commissions, missing breakpoints to generate higher commissions, switching of mutual funds that are intended long term investments outside of a mutual fund family to generate more commissions for them.
Free Initial Consultation With Experienced Mutual Fund Investment Attorneys Serving Fairfield, Iowa Residents In FINRA Arbitration Proceedings
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Iowa, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving Iowa citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.