Cambridge Investment Research Complaints, Regulatory History & Lawsuits
The White Law Group is reviewing the regulatory history of Cambridge Investment Research, Inc. (CRD #39543), a national broker-dealer headquartered in Fairfield, Iowa. According to the Financial Industry Regulatory Authority (FINRA), the firm reportedly has 17 disclosure events, including multiple regulatory actions and customer arbitration claims. These events may raise concerns for investors regarding firm supervision, conflicts of interest, and potential investor losses.
SEC Orders Cambridge Advisory Affiliate to Pay $15 Million
March 20, 2025 – The SEC obtained a final judgment against Cambridge Investment Research Advisors, Inc. for allegedly failing to disclose conflicts of interest and breaching fiduciary duties. The firm reportedly invested clients in higher-cost funds that generated additional revenue for Cambridge instead of lower-cost options and converted clients into higher-fee wrap accounts without adequate disclosure. Without admitting or denying the findings, the firm agreed to pay $15 million in disgorgement, interest, and penalties.
Mutual Fund Overcharge Restitution
December 20, 2024 – FINRA censured Cambridge and ordered $699,217 in restitution plus interest after determining the firm failed to properly supervise mutual fund sales charge waivers and rights of reinstatement, violating FINRA Rules 3110 and 2010.
Broker Misconduct & Customer Complaints
Broker-dealers are required to supervise financial advisors to help prevent misconduct. Cambridge has faced multiple incidents involving affiliated representatives, including:
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SEC Bars Sean Michael Kane – November 13, 2024
Barred after allegations of deceiving clients and impersonating them to conduct transactions. -
FINRA Bars Edward “Ed” Mercer – November 15, 2023
Allegedly refused to appear for testimony relating to a crypto investment investigation.
Cambridge Sanctioned Over LJM Alternative Mutual Fund
March 17, 2021 – FINRA fined Cambridge $400,000 and ordered $3.1 million in restitution for failing to reasonably supervise sales of the risky LJM Preservation & Growth Fund, which collapsed during the February 2018 market volatility event.
Additional Notable Actions
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December 2019 – FINRA sanctioned Cambridge for alleged short-term UIT trading and excess commissions.
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November 16, 2020 – Former Cambridge advisor Lynn Cawthorne barred following a federal wire fraud indictment related to misappropriation allegations.
Can Investors Recover Losses from Cambridge Investment Research?
Brokerage firms can be held liable for failure to supervise registered representatives. When misconduct leads to investment losses, claims are typically pursued through FINRA arbitration, not traditional court litigation.
Class Action vs. Individual FINRA Arbitration
Class actions may apply to investors with smaller, grouped claims, while investors with significant individual losses may be better served through FINRA arbitration.
Free Consultation with a Securities Attorney
If you suffered investment losses with Cambridge Investment Research or its advisors, you may be entitled to recovery through FINRA arbitration.
Contact The White Law Group at 888-637-5510 for a free consultation or visit whitesecuritieslaw.com.
FAQs – Cambridge Investment Research Lawsuits & Complaints
What types of claims have been filed against Cambridge Investment Research?
Claims typically involve failure to supervise, unsuitable investment recommendations, overcharging of fees, and conflicts of interest involving advisory compensation structures.
Can I file a lawsuit if I lost money with a Cambridge advisor?
Most claims against brokerage firms are handled through FINRA arbitration, not court lawsuits. An experienced securities attorney can review your case and explain your options.
What should I do if I suspect misconduct or overcharging?
Gather account statements, correspondence, and advisor communications, then contact a securities arbitration attorney to evaluate whether you may have a claim.
