Advisor Alert: Our Attorneys Are Investigating Danny Ray Strain For Investment Misconduct

Last Updated: February 2025 (Columbus, GA)

National securities fraud lawyers at Patil Law, P.C are investigating current Cape Securities Inc. broker Danny Ray Strain (CRD #437903) regarding allegations of misrepresentation, unsuitable investment recommendations, and churning. The investigation stems from multiple pending customer complaints alleging serious misconduct in the handling of variable annuities and real estate investment trusts (REITs).

Critical Insights About Columbus Financial Advisor Danny Ray Strain

• Advisor Name: Danny Ray Strain
• CRD: 437903
• Location: Columbus, GA
• Current Employer: Cape Securities Inc.
• Classification: Registered Representative & Investment Adviser Representative
• Primary Location: 5624 Whitesville Road, Columbus, GA 31904
• Can Danny Strain be sued in FINRA arbitration: Yes
• Customer Disputes: Two pending complaints
• Current Registrations: Licensed in 2 states
• Years of Experience: Since 1973
• Previous Employers: Resource Horizons Group, Pan-American Financial Advisers, ProEquities
• Professional Qualifications: Series 7, 63, 65 licenses, Chartered Financial Consultant
• Business Name: Elite Wealth Management Group, LLC
• Current Status: Active with Cape Securities

Details Of Current Investigations

Two customer complaints filed in 2023 allege:

• Misrepresentation and misleading information regarding investments
• Unsuitable investment recommendations
• Lack of supervision
• Churning of accounts
• Combined damages alleged to exceed $691,000
• Violations involving variable annuities and REITs
• Breach of contract and industry rules

Analysis Of Alleged Misconduct

The allegations raise serious concerns about:

• Investment suitability
• Trading practices
• Risk disclosure
• Account supervision
• Sales practice violations
• Client communication
• Fiduciary duty obligations

Regulatory Framework And Investor Protection

FINRA Rules require:

• Suitable investment recommendations
• Full disclosure of material facts
• Fair dealing with customers
• Proper account supervision
• Accurate documentation
• Client best interest practices

Professional Background

Mr. Strain’s career includes:

• Entry into securities industry in 1973
• Multiple firm associations over 50-year career
• Current dual registration as broker and investment adviser
• Operation of outside insurance business
• Chartered Financial Consultant designation

Red Flags For Investors

1. Multiple pending customer disputes
2. Allegations of misrepresentation
3. Claims of unsuitable recommendations
4. Variable annuity transactions
5. REIT investment issues
6. Churning allegations
7. Supervision concerns
8. Significant damage amounts

Implications For Current And Former Clients

Current and former clients should:

• Review all account statements
• Examine investment recommendations
• Verify transaction authorizations
• Document communications
• Assess portfolio suitability
• Review fee structures
• Evaluate risk levels
• Consider professional review

Patil Law P.C. Will Help You Recover Your Investment Losses

If you have concerns about your investments with Mr. Strain or experienced losses in variable annuities or REITs, please contact Attorney Patil online or call (800) 950-6553 for a free initial consultation. Our securities fraud attorneys work on a contingency fee basis, meaning we only get paid if we help you recover money.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.