Articles Tagged with Cambridge Investment Research

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Curtis Randle El, of Pittsburgh, Pennsylvania, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly recommending and executing unsuitable unit investment trust and mutual fund trades, including switches, in the accounts of elderly customers with conservative investment goals, causing the customers to suffer losses of approximately $33,185.00.

FINRA alleged that Mr. Randle El recommended and effected unsuitable trades in the accounts of three elderly customers who had conservative investment objectives.  Whereas Class A mutual funds and unit investment trusts (UITs) are designed to be longer-term investments, Mr. Randle El allegedly recommended that the customers sell them after an average of just 60 days.  Furthermore, some of the transactions involved mutual fund switching – a practice where Class A mutual fund shares’ proceeds are used to purchase other Class A mutual fund shares. Mutual fund switching violates the antifraud provisions of federal securities laws when stockbrokers, in order to increase their compensation, induce investors to incur the fees associated with redeeming shares of one mutual fund and purchasing the shares of another fund and the benefit to the customer does not justify those costs. Continue reading →

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Robert Lyons, of Augusta Georgia, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly executing unsuitable mutual fund switches in the accounts of three customers.

FINRA alleged that between January 2011 and December 2013, Robert Lyons recommended and effected fourteen unsuitable mutual fund switches in the accounts of three customers, resulting in unnecessary fees for his customers. Mutual fund “switching” is simply the process of transferring an investment from one mutual fund to another, sometimes for good reasons and other times to defraud clients. Some brokers attempt to effect numerous switches in client accounts in order to generate commissions.  In the case of Mr. Lyons, FINRA found that the former Cambridge Investment Research representative caused unnecessary losses to his clients and additional commissions for himself as a result of the mutual fund “switches” he recommended.  FINRA found that Mr. Lyons recommended his customers purchase Class A and Class T shares for the switches, which were only advantageous if the customers held them on a long-term basis, usually several years or more.  In this case, the switches recommended and effected by Mr. Lyons were held for less than one year and all of the customers involved incurred added and unnecessary commission charges. Continue reading →

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Glenn Allen Moffitt, a former registered representative with the Henderson Nevada branch of Cambridge Investment Research, Inc. (Cambridge) submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) sanctions and findings that he failed to appear for on-the-record testimony which was requested amid allegations that he converted approximately $370,000 from an elderly customer.

FINRA Rule 8210 requires registered representatives to appear as requested for on-the-record testimony at any time. According to FINRA, Mr. Moffitt acknowledged that he received FINRA’s request for his testimony in conjunction with the conversion allegations investigation, but Mr. Moffitt refused to appear. Consequently, Glenn Moffitt, of Henderson Nevada, was barred from association with any FINRA member in any capacity. Continue reading →