The Financial Industry Regulatory Authority (“FINRA”) has barred a former Cambridge Investment Research, Inc. stockbroker from the securities industry for refusing to cooperate with a FINRA investigation into whether he, among other things, exercised discretion without written authorization in a customer’s account. The investigation was launched after Cambridge Investment Research, Inc. terminated the broker in January 2020, alleging that he placed discretionary trades without authority.
The broker was associated with Cambridge Investment Research, Inc. in Moorestown, New Jersey, from September 2019 to February 2020. He was previously registered with SagePoint Financial, Inc. in Moorestown, NJ, from January 2010 until August 2019.
Customers of Cambridge Investment Research, Inc., or SagePoint Financial, Inc. who have suffered financial losses, or suspect that the firms did not have their best interest in mind when recommending investments or making account transactions, can contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as SagePoint Financial, Inc. or Cambridge Investment Research, Inc.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019063681001
On October 15, 2021, in connection with FINRA’s investigation, FINRA requested that the broker produce documents and information. The investigation concerned, among other things, whether the broker exercised discretion without written authorization in a client’s account. On November 3, 2021, the broker stated in a phone call that he would not produce the documents and information requested at any time.
By refusing to produce the information or documents as requested by FINRA, the broker violated FINRA Rules 8210 and 2010. Accordingly, he has been barred from associating with any FINRA member firm in any capacity.
FINRA and the broker entered into a Letter of Acceptance, Waiver, and Consent on November 8, 2021.
Unauthorized trading often occurs in non-discretionary accounts, where a customer retains discretion. In non-discretionary accounts, brokers must obtain a customer’s permission every time before placing a trade.
Unauthorized trading is an unethical and illegal practice. It is also a violation of securities rules and regulations and can cause enormous harm to customers.
Broker CRD No. 5254172
The broker had 11 years of experience in the securities industry and was associated with the following firms:
- Cambridge Investment Research, Inc. in Moorestown, NJ, from September 2019 to February 2020.
- LPL Financial LLC in Moorestown, NJ, from July 11, 2018, to July 31, 2018.
- SagePoint Financial, Inc. in Moorestown, NJ, from January 2010 to August 2019.
- Janney Montgomery Scott LLC in Philadelphia, PA, from March 2008 to December 2008.
- Morgan Stanley & Co., Incorporated in Voorhees, NJ, from June 2007 to December 2007.
- Lincoln Financial Advisors Corporation in Cherry Hill, NJ, from December 2006 to April 2007.
According to his public disclosure report with FINRA, the broker has been the subject of at least three customer disputes, which have included allegations of suitability and unauthorized trading.
Investors who have disputes with their financial advisors and brokerage firms can file securities arbitration claims to resolve the disputes and seek recovery of investment losses.
FINRA’s BrokerCheck tool can be used to obtain a broker’s complete and updated disclosure report.
Cambridge Investment Research, Inc. and SagePoint Financial, Inc. – A Duty to Supervise
Financial institutions like Cambridge Investment Research, Inc. or SagePoint Financial, Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have suffered investment losses with Cambridge Investment Research, Inc., or SagePoint Financial, Inc., or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your legal rights.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.
Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.