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Last Updated: February 2025

If you’re an investor who has worked with Cambridge Investment Research, Inc. (CRD# 39543) or are considering doing so, understanding their regulatory history and customer complaint record is crucial for protecting your financial interests. In this detailed analysis, we’ll examine Cambridge’s background, regulatory issues, and what it means for investors.

About Cambridge Investment Research

Cambridge Investment Research is a broker-dealer headquartered in Fairfield, Iowa, established in 1995. The firm is registered with FINRA, the SEC, and operates in 53 U.S. states and territories. They conduct 17 types of businesses, including mutual fund sales, variable annuities, and municipal securities trading.

Key Organizational Details:

  • Main office: 1776 Pleasant Plain Rd., Fairfield, IA 52556
  • Regulated by FINRA Kansas City Office
  • Owned by Cambridge Investment Group, Inc. (75% or more ownership)
  • Currently operates under multiple business names including “Cambridge” and “Jordan Creek Financial Services”

Recent Regulatory Issues and Customer Complaints

The FINRA BrokerCheck report reveals several concerning patterns of regulatory violations and customer complaints:

Mutual Fund Sales Practice Violations (2024)

  • Failed to supervise whether eligible customers received applicable mutual fund sales charge waivers
  • Customers paid $699,217 in excess sales charges and fees
  • Required to pay restitution plus interest to affected customers

Communication Supervision Issues (2024)

  • Failed to maintain adequate controls over business-related communications
  • Fined $600,000 by CFTC for supervision failures
  • Additional $10 million fine from SEC for similar violations

Customer Protection Failures (2021)

  • Failed to protect customer records and information
  • Over 121 email accounts compromised affecting 2,177 customers
  • Paid $250,000 fine for inadequate cybersecurity measures

Investment Recommendation Issues

  • Multiple instances of unsuitable investment recommendations
  • Failed to properly supervise sales of complex products like UITs and non-traditional ETFs
  • Required to pay significant restitution to affected customers

Arbitration Awards

Cambridge has faced multiple significant arbitration awards, including:

  • $243,506.74 award in 2014
  • $170,600.01 award in 2015
  • $210,375.00 award in 2018
  • $41,570.45 award in 2018

These awards typically involved allegations of:

FINANCIAL ADVISOR WITH CUSTOMER COMPLAINTS

We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.

Protecting Your Rights as an Investor

If you’ve invested money through Cambridge Investment Research or one of their financial advisors and experienced losses, you may have legal recourse to recover your funds. Common red flags include:

  1. Unexpected account losses
  2. Unauthorized trading
  3. Excessive fees or commissions
  4. Misrepresented investment risks
  5. Unsuitable investment recommendations

Frequently Asked Questions About Investment Loss Recovery

How do I know if I have a valid claim against Cambridge Investment Research?

Several factors can indicate a valid claim, including:

  • Losses that seem inconsistent with market conditions
  • Investments that didn’t match your stated risk tolerance
  • Unauthorized trades in your account
  • Excessive trading or “churning”
  • Misrepresented investment risks or features
  • Hidden or undisclosed fees Our attorneys can review your account statements and circumstances to determine if you have a viable claim.

How long do I have to file a claim?

While specific deadlines vary by state and circumstance, most investment-related claims have strict time limitations. Generally, you should act within:

  • FINRA arbitration: 6 years from the event giving rise to the dispute
  • State securities laws: 2-5 years depending on the state
  • Federal securities laws: 1-2 years for certain claims Don’t delay in seeking legal counsel, as waiting too long could bar your claim entirely.

What documents do I need to pursue a claim?

Important documents include:

  • Account statements
  • New account opening documents
  • Correspondence with your broker
  • Trade confirmations
  • Marketing materials or presentations
  • Notes from conversations with your broker However, don’t worry if you don’t have all these documents – we can help obtain necessary records.

How much does it cost to pursue a claim?

At Patil Law, P.C., we typically handle investment loss cases on a contingency fee basis. This means:

  • No upfront legal fees
  • We only get paid if we recover money for you
  • Our fee is a percentage of the recovery
  • Initial consultations are free

How long does the recovery process take?

The timeline varies depending on factors such as:

  • Complexity of the case
  • Number of transactions involved
  • Whether the case settles or goes to arbitration
  • Response from the broker-dealer Most cases resolve within 12-18 months, though some may take longer or shorter periods.

What types of compensation can I recover?

Potential recoveries may include:

  • Direct investment losses
  • Lost opportunity costs
  • Interest
  • Attorney fees and costs (in some cases)
  • Punitive damages (in rare cases) Each case is unique, and recovery amounts depend on specific circumstances and evidence.

Will I have to go to court?

Most investment disputes are resolved through FINRA arbitration rather than court. This process is:

  • Generally faster than court litigation
  • More private than public court proceedings
  • Less formal than traditional court
  • Usually more cost-effective
  • Binding on all parties

What makes Patil Law, P.C. different from other firms?

Our firm offers:

  • Exclusive focus on investment loss recovery
  • Deep understanding of securities regulations and FINRA rules
  • Track record of successful recoveries
  • Personal attention to each case
  • Clear communication throughout the process
  • Nationwide representation

Taking Action

The investment fraud attorneys at Patil Law, P.C. specialize in helping investors recover losses caused by broker misconduct and inadequate supervision. We understand the complex regulations governing broker-dealers and how to hold them accountable for violations.

Don’t wait to protect your financial interests. Contact Patil Law, P.C. at 800-950-6553 for a free consultation to discuss your situation and understand your options. Our experienced attorneys will review your case and help determine the best path forward for recovering your investment losses.

This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.