CFD Investments Complaints and Regulatory Actions

CFD Investments – Regulatory and Broker Misconduct Review

The White Law Group is investigating the regulatory history and broker misconduct involving CFD Investments, Inc. (CRD#: 25427/SEC#: 8-41727). Headquartered in Kokomo, Indiana, the dual-registered broker-dealer and investment advisory firm has faced multiple disciplinary actions, supervisory failures, and broker misconduct cases over the past decade. Most recently, on October 6, 2023, the Wisconsin Office of the Commissioner of Insurance denied CFD Investments’ insurance application after the firm incorrectly answered “No” to a question about prior regulatory actions. While the firm claimed the error was administrative, regulators proceeded with the denial.

Broker Misconduct and Customer Complaints

CFD Investments has a troubling history of misconduct by its representatives:

• Dana Vietor – Barred by FINRA in 2020 after engaging in $3 million in undisclosed private securities transactions tied to a cancer treatment business. In 2022, an arbitration panel ordered Vietor to pay $5.7 million in penalties to twelve former clients. He has at least 15 customer complaints on record.
• Matthew O. Bahrenburg (CRD#: 5295661) – Sanctioned by FINRA in 2020 with a 45-day suspension and a $5,000 fine for failing to conduct reasonable due diligence on oil and gas private placements, despite multiple red flags. He also filed for bankruptcy in 2017.
• William James Novack (CRD#: 1181334) – Barred by FINRA in March 2021 after failing to appear for testimony during a regulatory inquiry. He was registered with CFD Investments from 2019 to 2021. His record includes three disclosures, including a 2024 customer dispute settled for $47,500.

Private Placement Failures – Payson Petroleum

CFD Investments has also been sanctioned for inadequate due diligence on risky private placement investments. In 2020, FINRA fined the firm $750,000 and suspended it for 45 days for selling interests in Payson Petroleum, a distressed oil and gas company with a $9 million jury verdict against it. From 2015 to 2016, CFD sold Payson interests to 31 retail customers without proper due diligence. Investors lost their entire investments when Payson declared bankruptcy in 2016.

FINRA Sanctions for Supervisory Failures

CFD has a long record of supervisory violations:

• 2012–2014 – Fined $30,000 for failing to supervise sales of leveraged and inverse ETFs.
• 2019 – Censured and fined $125,000 for failing to supervise variable annuity sales between 2014 and 2016.

FINRA BrokerCheck

Investors can review the background of CFD Investments and its representatives through FINRA BrokerCheck. BrokerCheck provides details about disciplinary actions, customer complaints, and employment history, helping investors make informed decisions before working with a financial professional.

Duty to Supervise

Brokerage firms like CFD Investments are legally required to supervise their representatives under FINRA and SEC rules. Failures in supervision can expose clients to unsuitable investments, fraud, and other financial harm. When firms neglect this duty, they may be held responsible for client losses through FINRA arbitration.

Hiring a Securities Attorney

If you have suffered losses with CFD Investments, you may have legal recourse. The White Law Group has handled more than 700 FINRA arbitration claims nationwide, helping investors recover losses due to stock fraud, unsuitable investments, broker misrepresentation, and other misconduct.

Call The White Law Group at 888-637-5510 for a free consultation. Visit whitesecuritieslaw.com for more information.

FAQs

1. What happened with CFD Investments’ insurance application in Wisconsin?

In October 2023, the Wisconsin Office of the Commissioner of Insurance denied CFD Investments’ application after the firm incorrectly answered a regulatory question. Regulators said the misstatement raised compliance concerns, even though the firm claimed it was an administrative error.

2. How have CFD Investments brokers harmed investors?

Several CFD brokers, including Dana Vietor and William James Novack, have been barred by FINRA for misconduct ranging from undisclosed private securities transactions to failing to cooperate with regulators. These cases have resulted in millions in investor losses.

3. What options do investors have if they lost money with CFD Investments?

Investors may be able to pursue recovery through FINRA arbitration, which can hold the firm liable for supervisory failures and broker misconduct. Consulting with a securities attorney can help evaluate whether you have a viable claim for damages.