Cantella & Co. Review: Lawsuit Investigation

Cantella & Co. Shutters Broker Dealer – Joins Cambridge Investment Research

The White Law Group is investigating potential securities claims involving Cantella & Co. (CRD#: 13905), a Boston-based independent broker-dealer with a long history of regulatory issues and broker misconduct.

In a major shift, Cantella & Co. officially closed its broker/dealer and RIA registrations in 2024 and transitioned to a Super OSJ (Office of Supervisory Jurisdiction) under Cambridge Investment Research. The move reportedly brought over 105 financial advisors and $5 billion in client assets to Cambridge.

While Cantella has operated in the financial services industry since 1952, the firm has faced increasing scrutiny from regulators, with multiple SEC and FINRA disciplinary actions, customer complaints, and alleged supervisory failures in recent years.

Regulatory History of Cantella & Co.

According to FINRA’s BrokerCheck, Cantella & Co. has 31 disclosure events, including 19 regulatory actions, 6 arbitrations, and 1 civil event.

August 30, 2021 – SEC Sanctions Cantella & Co., Inc.

On August 30, 2021, the Securities and Exchange Commission (SEC) announced administrative and cease-and-desist proceedings against Cantella & Co., Inc. for breaches of fiduciary duty and failure to disclose conflicts of interest related to revenue-sharing from client cash sweep products. The firm agreed to pay $701,630 in disgorgement, interest, and civil penalties and was censured for violations of Sections 206(2) and 206(4) of the Advisers Act.

March 2019 – SEC Revenue-Sharing Charges

The SEC filed a cease-and-desist order against Cantella & Co. for failing to disclose revenue-sharing conflicts in its mutual fund recommendations. The firm allegedly placed clients into more expensive share classes that paid higher fees to the firm, rather than more cost-effective alternatives. Cantella paid over $900,000 in disgorgement and interest.

February 2016 – SEC Sanctions for F-Squared Misstatements

Cantella was fined $100,000 for advertising false performance data from F-Squared Investments’ AlphaSector strategy, without verifying its accuracy. The firm failed to conduct due diligence before passing along these misleading claims to clients.

September 2014 – FINRA Sanction for Excessive Commissions

FINRA fined Cantella $50,000 for charging excessive commissions on over 1,300 equity and options trades, and for failing to maintain an adequate supervisory system for commission review.

Broker Misconduct: Clinton F. Byrd and Others

Clinton F. Byrd (CRD#: 4673625)

In January 2023, FINRA sanctioned former Cantella broker Clinton Byrd for participating in private securities transactions without firm approval. He was fined $5,000 and suspended for nine months. Byrd was also terminated by Cantella in 2021 for allegedly failing to report a customer complaint. His disciplinary record includes multiple customer disputes, including one that settled for $450,000.

Donald Teboe (CRD#: 2571961)

In 2019, FINRA launched an investigation into unsuitable trading by Cantella broker Donald Teboe. He refused to cooperate and was barred from the securities industry. A 2018 customer complaint alleged negligence, fraud, and breach of fiduciary duty related to speculative investments between 2012 and 2017.

Cantella & Co. Complaints and Supervision Failures

Firms like Cantella & Co. have a duty to adequately supervise their financial professionals. When they fail to detect or prevent broker misconduct, they may be held liable for resulting investment losses through FINRA arbitration claims.

Common issues reported in connection with Cantella & Co. include:

• Unsuitable investment recommendations

• Failure to disclose conflicts of interest

• Negligent supervision

• Fraud and misrepresentation

Recovering Investment Losses – Free Consultation

If you suffered investment losses while working with a Cantella & Co. advisor, you may have options to recover damages. The White Law Group has handled hundreds of FINRA arbitration claims involving brokerage firms and financial advisors.

To discuss your potential claim with a national securities attorney, please call The White Law Group at 888-637-5510for a free consultation.

Visit www.whitesecuritieslaw.com for more information.

Frequently Asked Questions

1. Why did Cantella & Co. shut down its broker/dealer business?

Cantella transitioned to a Super OSJ under Cambridge Investment Research in 2024, likely due to increasing regulatory pressures and the challenges of operating a small independent broker/dealer.

2. Can I sue Cantella & Co. for investment losses?

You may be able to file a FINRA arbitration claim if you lost money due to misconduct by a Cantella advisor. Common claims include unsuitable investments, lack of supervision, or failure to disclose risks.

3. What types of misconduct have Cantella brokers been accused of?

Cantella representatives have been implicated in unauthorized transactions, private securities deals, misrepresentation, and negligent supervision, according to FINRA and SEC filings.