Utah Investor Files FINRA Claim Against Cambridge Investment Research Over Conservation Easement Losses
The White Law Group has filed a FINRA arbitration claim on behalf of a Utah investor against Dempsey, Lord Smith, now operating under FINRA member firm Cambridge Investment Research. The claim alleges the investor’s broker recommended unsuitable conservation easement investments in Norcave Capital Investments and Ohoopee Investments. The investor is seeking damages of $100,000 to $500,000. This claim follows a similar FINRA claim The White Law Group recently filed against the same firm on behalf of a South Carolina family. If you invested through this broker or branch and suffered losses, you may be able to speak with our FINRA arbitration attorneys about your options.
What the Claim Alleges
The claim alleges the broker recommended a concentrated position in illiquid conservation easement syndications without adequately considering the investor’s risk tolerance, investment objectives, or need for liquidity. The claimant alleges that Cambridge Investment Research (CRD #39543), as the FINRA member firm responsible for supervising the broker’s recommendations, failed to catch and stop a pattern of unsuitable sales.
Investments Named in the Claim
The claim identifies the following conservation easement investments as having been recommended to the claimant:
Both investments are structured as syndicated conservation easement offerings, a category of private placement that carries significant illiquidity risk and has drawn increasing regulatory scrutiny in recent years.
Managing Partner Statement
“Conservation easement investments carry risks that most retail investors aren’t equipped to evaluate on their own, and that’s exactly why brokers are supposed to vet suitability before recommending them,” said Dax White, managing partner of The White Law Group. “We believe there may be other investors at this same firm who were sold similar conservation easement deals and don’t yet realize they have recourse.”
Can Cambridge Investment Research Be Held Responsible?
Broker-dealers are required to supervise the recommendations made by their registered representatives. When a firm fails to catch unsuitable or overconcentrated recommendations, it can be held liable for the resulting losses, even if it did not directly make the recommendation itself.
Recovering Losses from Conservation Easement Investments
Investors who were sold unsuitable conservation easement syndications may be able to recover losses through FINRA arbitration. The White Law Group is investigating potential claims on behalf of other investors who worked with this broker or branch and were recommended similar investments.
Contact The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. If you invested through Dempsey, Lord Smith or Cambridge Investment Research and believe you were sold unsuitable conservation easement investments, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested through this broker?
Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know exists until they need it. That means claims like this are generally filed and resolved through FINRA arbitration rather than in court, and arbitration can still result in a monetary recovery for investors.
2. What makes a conservation easement recommendation “unsuitable”?
A recommendation is unsuitable when it doesn’t match an investor’s risk tolerance, liquidity needs, or investment goals. Conservation easement syndications are illiquid, complex, and have faced growing IRS and regulatory scrutiny, making them generally inappropriate for a large share of a retail investor’s portfolio.
3. Can Cambridge Investment Research be held responsible even if it didn’t directly approve the investment?
Yes. Broker-dealers have a duty to supervise their registered representatives’ recommendations. If a firm’s supervisory system failed to catch a pattern of unsuitable sales, the firm may be liable for the resulting losses.
