Articles Tagged with Cambridge Investment Services

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses in the LJM Preservation and Growth Fund. When broker-dealers sell you investments, they are responsible for fully informing you of the risks at the point of sale. When they fail to give you an honest, transparent disclosure on what they are selling – and the investments tank — you may have an arbitration case that you can pursue to get your money back.

Cambridge Investment Research, Merrill Lynch, and other brokerage firms sold a mutual fund called the LJM Preservation and Growth fund to their customers. The fund’s “value plummeted 80% over two days in early February 2018, after brokers in the previous two years sold $18 million of its shares to more than 550 customers, prompted by sales calls in May 2016 from an LJM wholesaler,” the securities regulator FINRA stated. “The fund was liquidated and dissolved in March 2018.”

What made the fund so volatile that led to its demise? It employed a risky strategy called “uncovered options,” but failed to tell investors that it was a highly complex vehicle prone to catastrophic losses.

Stoltmann Law Offices is investigating Michael Anthony Duch, a former registered representative with Cambrdige Investment Research. Duch entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), and was accused of participating in private securities transactions. Duch allegedly contacted a married couple, customers of Cambridge regarding an investment opportunity in Running Springs Oil and Gas. The couple was told that their investment was part of Cambridge Investment Services’ investments, when, in fact, it was not. This is commonly referred to as selling away and is when a registered representative offers and sells investments that are not sold or offered by his member firm to garner large commissions and fees for the broker himself. Selling away is against securities rules and regulations.

According to his FINRA BrokerCheck report, Duch was registered with FFP Securities in Chesterfield, Missouri from September 1992 untili January 2001, Legacy Builders Securities in Fargo, North Dakota from June 2001 until August 2004, Cap Pro Brokerage Services in Columbus, Ohio from January 2001 until September 2005 and Cambridge Investment Research in Aberdeen, South Dakota from September 2005 until August 2010. He is currently registered with Kovack Securities in Aberdeen, South Dakota and has been since July 2010. He has two customer disputes against him.

If you invested money with Duch, his former firm, Cambridge Investment Research, can be held liable for your financial losses. They had a duty to reasonably supervise him while he was employed there, so as not to allow him to sell away. Please call 312-332-4200 for a free consultation with an attorney. There is no obligation and we take cases on a contingency fee basis only.

The Securities and Exchange Commission (SEC) recently alleged that Howard D. Richards engaged in market manipulation of the price of Gatekeeper USA Inc. (GTKP:US) stock. Gatekeeper is a startup company that marketed a container monitoring device used for cargo companies. The SEC alleged that Richards held many shares of that stock and had his advisory clients purchase the stock at inflated prices when the stock fell below certain levels. His clients allegedly bought shares at higher levels than others. This is against rules and regulations.

Richards was registered with IDS Life Insurance Company in Minneapolis, Minnesota from November 1991 until November 1995, American Express Financial Advisors in Minneapolis from November 1991 until November 1995, Royal Alliance Associates in New York, New York from November 1995 until March 2001, Cambridge Investment Research in Plymouth, Minnesota from March 2001 until December 2013 and NFP Advisor Services in Plymouth from January 2014 until June 2015. According to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report, the SEC permanently barred him from acting as a broker or investment advisor.

If you invested money with Richards, please call our securities law firm in Chicago at 312-332-4200 to speak to an attorney for free. His former firm, Cambridge Investment Services, may be liable for investment losses because of their inability to reasonably supervise him while he was employed there. We sue firms such as Cambridge in the FINRA arbitration forum. We take cases on a contingency fee basis only.

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