Brad C. Lawing of Springfield, Missouri, a stockbroker formerly registered with Cambridge Investment Research, Inc., has been fined $10,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that Lawing, inter alia, effected unsuitable business development company transactions in customers’ investment accounts. Letter of Acceptance, Waiver and Consent, No. 2016050058801 (Nov. 7, 2017).
According to the AWC, from December of 2014 to January of 2015, shares of a speculative and illiquid business development company were recommended by Lawing to three of the firm’s customers even though the investments were not suitable for the customers. Particularly, two of the customers failed to meet the standards for suitability as set forth by the issuer; the third customer’s investment portfolio was overconcentrated as a result of pursuing the recommendation by Lawing.
The AWC stated that no adequate due diligence had been conducted to identify the financial situation of the customers or their tolerance for risk. Apparently, Lawing made recommendations for one customer to purchase the securities through mail and without ever having engaged the customer in conversation. In the other circumstances, Lawing reportedly failed to accumulate sufficient details regarding the investment profiles of customers in order to determine suitability relating to the allocation of customers’ assets in the business development companies.
FINRA found that Lawing’s conduct was violative of FINRA Rules 2010 and 2111 because of his failure to have an adequate basis for concluding that the securities or concentration of those securities was suitable for the three firm customers at the point in which he made the investment recommendations.
FINRA Public Disclosure confirms that Lawing has been identified in eleven customer initiated investment related disputes pertaining to allegations of his improper conduct during the time he was registered with Cambridge Investment Research, Inc. Particularly, on May 12, 2017, a customer filed an investment related written complaint involving Lawing’s conduct, where the customer requested $27,900.38 in damages founded on accusations that Lawing omitted that the customer would be exposed to fees in the course of effecting a sale of the customer’s variable annuity.
Then, on August 15, 2017, a written complaint regarding Lawing’s activities was resolved for $1,605.78 in damages resting on allegations that Lawing failed to inform the customer about the tax liabilities of selling a variable annuity. Another customer complaint was filed on September 26, 2017, in which the customer sought $9,998.00 in damages based upon accusations of Lawing’s failure to disclose tax consequences pertaining to Franklin Templeton mutual fund liquidations.
Moreover, on October 16, 2017, a customer initiated investment related written complaint involving Lawing’s conduct was settled for $3,000.00 in damages supported by allegations that Lawing transferred the customer’s variable annuity to another product even though he failed to inform the customer about fees and surrender penalties pertaining to the transfer.
Lawing’s employment with Cambridge Investment Research, Inc. was terminated on August 24, 2017.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
