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Written by 3:42 pm Broker Investigations

David Arlein, Cabot Lodge Securities, 22 Customer Complaints 

David Arlein, Cabot Lodge Securities, 22 Customer Complaints featured by top securities fraud attorneys, The White Law Group

David Arlein Allegedly Misrepresented GWG L Bonds to Investors 

According to public records posted on FINRA’s website, broker David Arlein (CRD #7145), formerly registered with Cabot Lodge Securities in Boca Raton, Florida, reportedly has 22 customer complaints. Arlein’s record indicates he has 2 complaints currently pending for allegations involving sales of GWG Holdings investments.

According to a pending complaint filed on July 6, 2023, Arlein’s customers alleged “breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, failure to supervise, and negligence – violation of Regulation Best Interest regarding purchases of GWG L Bonds during the year 2020.” The damage amount requested was $300,000.00.

On January 12, 2023, a customer filed a complaint alleging “breach of fiduciary duty, negligence, negligent supervision, fraud, breach of contract, violation of Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 of the Securities, and Exchange Commission, violation of the Florida Securities and Investor Protection Act regarding purchase of GWG.” The damage amount requested was $500,000. 

 GWG Holdings – FINRA Claims for Recovery

 GWG Holdings, a Dallas-based financial services firm filed for Chapter 11 bankruptcy protection on April 20, 2022, after failing to make $13.6 million in interest payments to bondholders. The White Law Group has filed numerous claims on behalf of investors in GWG L Bonds to attempt to recover their investment losses. 

FINRA BrokerCheck: David Arlein 

 The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.  

According to David Arlein’s FINRA BrokerCheck report, he reportedly has 3 regulatory disclosures on his broker record, in addition to the complaints. In June 2022, the state of Florida ordered a cease and desist/injunction and 2-year registration agreement after allegations of “unsuitable recommendation and unregistered activity.” 

Though he is not currently registered as a broker, Arlein was reportedly affiliated with the following firm during his career, among others:  

03/12/2014 – 10/26/2022, CABOT LODGE SECURITIES LLC (CRD#:159712), BOCA RATION, FL,
B, 06/15/2009 – 02/28/2014, FINTEGRA, LLC (CRD#:16741), BOCA RATON, FL 

Filing a Complaint against your Brokerage Firm   

FINRA has regulations in place to ensure advisors act in the best interest of their clients (known as fiduciary duty), but it is wise for investors to stay informed and ask for clarification about any recommendations made by their advisor. 

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees. 

If you have suffered investment losses with David Arlein and Cabot Lodge Securities, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.  

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.          

With over 30 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses.  For more information, please visit our website, www.whitesecuritieslaw.com.          


Tags: , , , Last modified: January 18, 2024