Category Archives: Cabot Lodge Securities

Compliance Officer Sues Owner of Cabot Lodge Securities

February 10, 2015

Albert Akerman , the former chief compliance officer of Cabot Lodge Securities has filed a suit in New York State Court against Cabot Lodge , an affiliate United Realty Advisors,  Jacob Frydman and Craig Gould, acting CEO of Cabot Lodge.

Akerman alleges that he was wrongfully terminated and that he has been defamed in FINRA regulatory filings.

Akerman further alleges that Frydman controls Cabot Lodge and United Realty and  “is a hyper-litigant with a history of fraud claims and breaches of obligations leveled against him”. Akerman alleges that during 2014 there were numerous transactions that were cause for concern and some that were in violation of the law. That part of the complaint has those details redacted.

Cabot Lodge Securities is registered in 52 states and territories and its main office is in New York City.

If you have losses in an account at Cabot Lodge Securities, you may be able to recover damages through FINRA arbitration. Contact us to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

GWG Renewable Secured Debentures/ GWG Notes-Regulator Takes Action

A search of the FINRA Disciplinary proceedings, as of December 3, 2014, reveals that the  following actions involving GWG Renewable Secured Debentures have been brought by FINRA against the named brokerage firm and/or broker(s):

  • 10/20/2013- Wall Street Strategies, Garry Savage, Sr. & Louis Karl Kittlaus named in apendingFINRA complaint (Case #

    2012033508702) alleging that misleading sales literature was distributed related to GWG Debenture and that unsuitable recommendations were made.

  • 5/22/2014- Letter of Acceptance Waiver and Consent from Michael John Wurdlinger, (Case #2012034936001) who worked for Center State Securities until April 30, 2013. To resolve allegations that Wurdlinger failed to adequately supervise sales of illiquid , high risk GWG Debentures, he agreed to a six month suspension from serving in a principal capacity and to requalify by examination for  principal capacity.
  • 6/19/2014- Letter of Acceptance Waiver and Consent from Anil Vazirani  (Case #2012034936002) who worked for Center State Securities until 11/05/2012. To resolve allegations that he sold $500,000 of GWG Debentures to seven customers without being registered with FINRA as required, he agreed to a 30 day suspension and a fine of $5,000.
  • 6/27/2014- Letter of Acceptance Waiver and Consent from 79 Capital Securities, LLC and Michael M. Ward (Case#2013035565002). To resolve allegations that 79 Capital Securities and Ward prepared an internet posting regarding the Debentures that omitted material information, allowed an unregistered employee sell securities  and that they failed to record required customer information related to sales of the Debentures they agreed to a $25,000 fine, a censure of 79 Capital Securities and Ward was suspended in all principal capacities for 20 days.
  • 8/12/2014- Letter of Acceptance Waiver and Consent from Jason Price Lamb, Chief Compliance Officer at Center Street Securities, Inc. (Case#2012034936003). To resolve allegations that Lamb failed to supervise certain sales of the Debentures by Center Street representatives, including sales to elderly customers and retirees, whose investment objectives were inconsistent with the speculative nature of the Debentures, Lamb agreed to a suspension in all principal capacities for two months and a fine of $10,000.
  • 8/12/2014-Letter of Acceptance Waiver and Consent from Center Street Securities, Inc. (Case #2012034936004). To resolve allegations that Center Street had inadequate supervisory procedures and permitted representatives to make unsuitable recommendations to purchase the Debentures to customers with stated conservative investment objectives and need for safety of principal, and distributed inaccurate sales literature regarding the Debentures, Center Street agreed to a censure, and undertaking to revise procedures and a fine of $100,000.
  • 8/12/2014-Letter of Acceptance Waiver and Consent from Robert Fontaine a broker with Freedom Investors Corporation (Case# 2013035565401). To resolve allegations that Fontaine made unsuitable recommendations and sale of GWG Debentures to customers he agreed to a one month suspension and a fine of $10,000.
  • 8/25/2014-David Joseph Escarcega named in FINRA Disciplinary Proceeding #2012034936005 alleging that Escarcega made unsuitable recommendations, falsely told customers that the Debentures were safe, low-risk liquid, or guaranteed and that he distributed a misleading sales brochure regarding the Debentures. Escarcega is currently registered with Center Street Securities.
  • 11/14/2014-Letter of Acceptance Waiver and Consent from Arque Capital, Ltd. (Case# 2012033994701). To resolve allegations that Arque Capital distributed misleading information   GWG Debenture sales material Arque agreed to a censure and a $50,000 fine.
  • 11/25/2014-Jeffrey D. Noard named in FINRA Disciplinary Proceeding #2012034936101 alleging that Noard made an unsuitable recommendation and sale of GWG Debentures to an elderly widow, with few financial assets, significant liquidity needs, and a “moderately conservative” risk tolerance who was  seeking income to fund her retirement. Noard was previously registered with Allied Beacon Partners, a firm that was expelled by FINRA in December 2013. He is currently registered with Cabot Lodge Securities.

GWG Renewable Secured Debentures

GWG Holdings purchases life insurance policies on the secondary market at a discount and begins paying the policy premiums until the death of the insured, at which time it collects the insurance benefit. The business model anticipates collecting more upon the maturity of the policy than was paid to purchase it and pay the premiums.

In 2012, GWG began selling the Renewable Secured Debentures with a minimum investment of $25,000 and with varying terms of 6 months to 7 years and interest rates ranging from 4.75% to 9.5%.

An investment in the Debentures is illiquid, involves a high degree of risk, including the risk of loss of the entire investment and not suitable for those investors who have limited liquid net worth or who need liquidity prior to the Debenture’s maturity date.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Jeffrey Noard Named in Complaint by Securities Regulator Over Sale of GWG Debentures

November 25, 2014-Menomonee Falls, WI

The Financial Industry Regulatory Authority (FINRA) filed a Disciplinary Complaint against Jeffrey D. Noard, formerly registered with Allied Beacon Partners, Inc.  for making an unsuitable recommendation to one of his elderly clients.

GWG Renewable Secured Debentures– These investments are described in the prospectus as being illiquid, speculative and involving a high degree of risk, including the risk of losing the entire investment. There is no trading market for the GWG Debentures and investors cannot access their principal prior to maturity , absent death, bankruptcy, or total disability.

FINRA alleges that Noard sold $20,000 of GWG Debentures to an 82 year old widow whose stated objective was to fund her retirement. She had income of $40,000 a year and a liquid net worth of $40,000. Her stated risk tolerance was “moderately conservative” and she could not afford to lose any principal.

According to FINRA records, Noard is currently registered with Cabot Lodge Securities, LLC.

If you lost money in an account handled by Noard or as a result of investing in GWG Debentures, contact us to learn how you may be able to recover damages.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  in Wisconsin and nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Stockbroker Richard A. McGuire Sanctioned by Regulators

November 3, 2014- The Financial Industry Regulatory Authority (FINRA) barred Richard A. McGuire from associating with any FINRA member firm in any capacity and ordered him to pay restitution of $95,000, plus interest for forging a former customer’s signature to loan agreements. Disciplinary proceeding No. 20110273503. 

According to FINRA records, McGuire was registered with the following firms:

  • Financial West Group                      7/28/2014-11/3/2014
  • Cabot Lodge Securities                   3/2013-8/2014
  • Investacorp, Inc.                                  6/2011-12/2012
  • Americas Investment Corp.         12/2009-4/2011

If you suffered losses in an account managed by McGuire, contact us to learn how you may be able to recover damages.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

FINRA Sues Richard McGuire-Alleges Theft/Forgery in Customer’s Account

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

July 2013

Richard Allen McGuire
(CRD #4637028, Registered Representative, Bay Shore, New York) was named a respondent in a FINRA complaint alleging that he converted a total of approximately $95,000 from a former customer by misrepresenting that purported investments of $60,000 and $35,000 were for the purchase of products similar to annuitiesand issued by a company he owned and controlled. The checks the customer provided were deposited in a bank account that McGuire controlled, and McGuire used them to
pay for personal expenses and to benefit his unapproved outside business. The complaint alleges that when the customer asked to withdraw a portion of her $95,000 investment, McGuire declined to do so, advising her that a withdrawal would result in the assessment of severe financial penalties. The complaint also alleges that in response to FINRA inquiries, McGuire provided copies of loan agreements, in which he forged or caused to be forgedthe customer’s signature, reflecting the customer’s purported loan of $95,000 to McGuire’s business. The customer never made any loans to McGuire or his company.

 

The complaint further alleges that McGuire failed to notify his member firms of his activities related to outside businesses, including his company. In addition, the complaint alleges that McGuire failed to make written notification to his member firms of securities accounts he maintained, one in his own name and one in his company’s name, at other brokerage firms; and also failed to notify the broker-dealers where he maintained the accounts of his association with member firms. Moreover, the complaint alleges that McGuire willfully failed to disclose unsatisfied state and federal tax liens on his Form U4. (FINRA Case #2011027350301)

According to FINRA records, McGuire is  currently registered with Cabot Lodge Securities since 3/4/2013. He was previously registered with the following firms:

InvestaCorp Inc.
6/2011-12/2012

Ameritas Investment Corp.
12/2009-4/2011

Ameritas Investment Corp. was formed in 1984. They have nearly 1,300 registered representatives in over 550 offices nationwide. Their main office is located in Lincoln, Nebraska.

TFS Securities, Inc.
5/2008-12/2009

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Former David Lerner Officer Leaves to Start New Firm

March 21, 2012

The former chief compliance officer of David Lerner Associates, Inc. has formed a new firm, Cabot Lodge Securities, and has opened three offices in New York City and is opening a fourth in Boca Raton, FL.

Cabot has 20 advisers at the time, according to the Investment News, and plans to grow to 100 or 125 by the end of the year. Cabot promises a higher payout and an ownership interest in the firm. The firm will sell proprietary products like private placements, real estate programs, oil & gas programs as well as publicly traded and nontraded real estate investment trusts.

Albert Ackerman, Cabot’s CEO has extensive experience with Lerner. Lerner has sold over $6 billion of nontraded REITs to over 100,000 customers since 1992.

David Lerner and his company have recently been the subject of a FINRA investigation in connection with their REIT sales. More information on Lerner’s problems can be found here.  

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870