Articles Posted in LJM Preservation & Growth Fund

The Financial Industry Regulatory Authority (“FINRA”) has sanctioned Securities America, Inc. (“Securities America”) for failing to reasonably supervise brokers’ recommendations of the LJM Preservation & Growth Fund.  On March 29, 2021, FINRA and Securities America entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Securities America accepted the following sanctions:

  • a censure;
  • a $100,000 fine;

The Financial Industry Regulatory Authority (“FINRA”) has sanctioned J.W. Cole Financial, Inc. (“J.W. Cole”) for failing to reasonably supervise brokers’ recommendations of the LJM Preservation & Growth Fund.  On March 18, 2021, FINRA and J.W. Cole entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby J.W. Cole accepted the following sanctions:

  • a censure;
  • a $50,000 fine;

The Financial Industry Regulatory Authority (“FINRA”) has sanctioned Cambridge Investment Research, Inc. (“Cambridge”) for failing to reasonably supervise brokers’ recommendations of the LJM Preservation & Growth Fund.  On March 29, 2021, FINRA and Cambridge entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Cambridge accepted the following sanctions:

  • a censure;
  • a $400,000 fine;

**Update: 3/29/2021** On March 29, 2021, FINRA and Cambridge Investment Research, Inc. entered into a Letter of Acceptance, Waiver, and Consent (AWC) whereby Cambridge accepted sanctions including a censure, $400,000 fine, and over $3.1 million in restitution.   FINRA alleged that Cambridge failed to reasonably supervise representatives’ recommendations of the LJM Preservation & Growth Fund. Cambridge representatives sold more than $18 million in LJM to customers. LJM’s value dropped 80% during an extreme volatility event in February 2018 and the fund ultimately liquidated and closed, resulting in millions of dollars in losses for Cambridge’s customers.  To read more, click on the following link: FINRA Sanctions Cambridge Investment Research, Inc. For Failing to Supervise the Sale of the LJM Preservation and Growth Fund

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