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FINRA Disciplinary Action against Cambridge Investment Research, Inc.

On April 11, 2018, FINRA issued a Letter of Acceptance, Waiver and Consent in which Cambridge Investment Research, Inc. (Cambridge) was censured and fined $150,000.  Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish, maintain and enforce a supervisory system and written supervisory procedures designed to supervise representatives’ sales of leveraged, inverse-leveraged exchange-traded funds (Non-Traditional ETF’s) and the redemption of variable annuities.

During the relevant period, January 2014 to March 2016, Cambridge’s customers, redeemed variable annuities and transferred the proceeds to an advisory account, on about 100 occasions.  It was found that the firm’s associated persons were involved with and recommended some of those transactions.    Additionally, from June 2012 to June 2015, eighty-four Cambridge registered representatives traded 4,773 transactions involving Non-Traditional ETFs in retail customers accounts, totaling about $127 million.  Cambridge failed to enforce its procedures and adequately monitor its representatives.

If you believe that you have suffered losses as a result of misconduct, you may contact David A. Weintraub, P.A. 7805 SW 6th Court, Plantation, FL 33324.  By phone: 954.693.7577 or 800.718.1422.

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