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Last Updated : February 2025

If you’ve invested money with Capital Investment Group (CIG) or are considering doing so, it’s crucial to understand the firm’s history, regulatory issues, and potential red flags. This comprehensive review examines CIG’s BrokerCheck report and highlights important information for investors.

About Capital Investment Group

Capital Investment Group (CRD# 14752) is a broker-dealer headquartered in Raleigh, North Carolina, established in 1984. The firm operates through multiple business lines including:

  • Retail securities sales
  • Corporate debt and equity securities
  • Mutual fund sales and underwriting
  • Variable insurance products
  • Private placements
  • Real estate syndication
  • Oil and gas interests

The firm is regulated by FINRA and registered in 53 U.S. states and territories. It operates as a fully-disclosed introducing broker-dealer through Pershing LLC, which maintains customer accounts and records.

Key Regulatory Issues and Customer Disputes

The BrokerCheck report reveals several concerning regulatory actions and customer disputes:

  1. 2022 FINRA Action: The firm was censured and fined $50,000 for negligently failing to disclose material information to investors regarding offering delays and auditing issues. CIG was ordered to pay $64,800 in restitution to affected customers.
  2. 2018 Massachusetts Securities Division Action: CIG faced sanctions for failing to reasonably supervise outside business activities of one of its agents, resulting in harm to Massachusetts investors. The firm was censured and required to pay fines and review its supervisory procedures.
  3. Recent Arbitration Awards:
  • 2023: $1,005,959 award involving limited partnership investments
  • 2014: $30,000 award related to misrepresentation claims
  • 1997: $1.3 million award involving breach of fiduciary duty

Concerning Patterns and Trends

Analysis of CIG’s regulatory history reveals several troubling patterns:

  1. Supervision Issues: Multiple regulatory actions cite failures in supervising representatives and their activities
  2. Disclosure Problems: Repeated instances of failing to provide complete and accurate information to investors
  3. Due Diligence Concerns: Questions about the firm’s due diligence processes, particularly regarding alternative investments
  4. Limited Partnership Issues: Multiple disputes involving limited partnership investments

Advisor Complaints and Actions

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.

What This Means for Investors

If you’ve invested money through Capital Investment Group or its representatives, you should:

  1. Review your account statements and investment recommendations carefully
  2. Document any concerns about unsuitable investments or misrepresentations
  3. Pay particular attention to alternative investments, limited partnerships, or other complex products
  4. Consider whether your investments align with your stated risk tolerance and investment objectives

Taking Action to Protect Your Rights

If you believe you’ve suffered losses due to misconduct by Capital Investment Group or its representatives, it’s important to understand your legal rights and options. The investment fraud attorneys at Patil Law, P.C. specialize in representing investors who have lost money due to broker-dealer misconduct, unsuitable investment recommendations, or inadequate supervision.

Frequently Asked Questions About Claims Against Capital Investment Group

What is the time limit for filing a claim against Capital Investment Group?

Generally, FINRA arbitration claims must be filed within 6 years of the event giving rise to the dispute. However, different statutes of limitations may apply depending on your specific situation and state laws. It’s crucial to contact an attorney promptly if you suspect misconduct to preserve your legal rights.

Do I need to pay any upfront legal fees to pursue a claim?

At Patil Law, P.C., we typically handle investment fraud cases on a contingency fee basis. This means you don’t pay any legal fees unless we successfully recover money for you. During your free initial consultation, we’ll explain our fee structure and how we work to protect your interests.

What types of misconduct can I recover damages for?

Common grounds for recovery include:

How do I know if I have a valid claim against Capital Investment Group?

Key indicators of potential misconduct include:

  • Significant unexpected losses
  • Investments that don’t match your stated objectives
  • Complex products you don’t understand
  • High-pressure sales tactics
  • Unauthorized transactions
  • Misleading statements about risk or returns

What documentation should I gather before contacting an attorney?

Try to collect:

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

Can I recover all of my investment losses?

The amount of recoverable damages depends on various factors, including:

  • Nature and extent of misconduct
  • Documentation of losses
  • Overall market conditions
  • Statute of limitations
  • Strength of evidence

Contact Patil Law, P.C. at 800-950-6553 for a free consultation to discuss your situation and potential recovery options. Our experienced securities attorneys can help evaluate your case and determine the best course of action to protect your interests and seek recovery of your 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.