Lynn Dale Cawthorne of Shreveport Louisiana a stockbroker formerly registered with Cambridge Investment Research Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a Decision and Order of Offer of Settlement containing findings of Cawthorne failing to comply with FINRA during an investigation concerning Cawthorne’s alleged failure to report that he was indicted for committing wire fraud and for conspiring to commit fraud where $536,000.00 had been misappropriated. Department of Enforcement v. Lynn Dale Cawthorne Disciplinary Proceeding No. 2018059919702 (Nov. 16, 2020).
On April 26, 2018, Cawthorne was charged with wire fraud and conspiracy to commit wire fraud supported by allegations of the stockbroker’s misappropriation from a government nutritional program for children in low-income areas.
Cawthorne became subject of FINRA’s investigation after which point he was discharged by Cambridge Investment Research founded on allegations of him concealing the indictment from the securities broker dealer.
According to the Decision, Cawthorne was asked to furnish information to FINRA between June of 2019 and November of 2019 in regard to his alleged nondisclosures of those felony charges to Cambridge Investment Research.
Cawthorne was contacted by FINRA on June 17, 2019 with instructions to hand over information about why Cambridge discharged him. FINRA also wanted to know more about the eighteen felony counts of conspiracy to launder money, money laundering as well as the stockbroker’s potential private securities transactions and outside business activities.
Cawthorne did not respond to FINRA. On November 7, 2019, Cawthorne was asked for the fourth time to hand over documents relating to these fraud allegations against him. The stockbroker did not cooperate in any manner. The regulator suspended Cawthorne in all capacities on January 27, 2020 and offered the stockbroker an opportunity to relieve the suspension as long as he complied with its requests. Cawthorne sought that the suspension be lifted even though he did not hand over anything that FINRA asked for. Cawthorne’s activities were violative of FINRA Rules 2010 and 8210.
Cawthorne was registered with Cambridge Investment Research between April 16, 2013 and September 24, 2018.
