Securities Lawyers Blog
We represent clients of financial advisors and brokerage firms in investment disputes against their firms, such as Cabot Lodge Securities LLC. Our services cover a wide spectrum of broker misconduct, including unsuitable investments, failure to supervise, and losses in various investment products. Our firm can analyze your brokerage accounts, determine the extent of your investment losses, and understand the issues and remedies available.
Cabot Lodge Securities is a retail broker-dealer that earns commissions as agent on listed and over-the-counter securities and sells mutual funds, annuities, retirement plans, and 529 education savings plans, along with participating in best-efforts securities offerings. Formed in Delaware in 2011 and based at 200 Vesey Street in New York City, the firm is a wholly owned subsidiary of PKS Holdings.
Cabot Lodge Securities LLC – By the Numbers:
- CRD #: 159712
- Regulatory Events: 2
- Arbitration Events: 1
- Broker Employees: 114
Cabot Lodge Securities LLC – In the News:
FINRA v. Cabot Lodge Securities LLC (Case #2014041541401) – From August 2012 to February 2016 (the “Relevant Period”), Cabot Lodge Securities LLC (“Cabot Lodge” or the “Firm”) participated in an initial public offering (“IPO”) of a non-traded real estate investment trust (the “REIT”) in which the amount of organization and offering expenses (“O&O”) exceeded fair and reasonable limits, and compensation to Cabot Lodge representatives was not disclosed. These failures resulted largely from the Firm’s failure to supervise its underwriting and sales of the REIT, which was its main product during the Relevant Period. The Firm also made an unsuitable recommendation to an elderly customer. Cabot Lodge sought to become dealer manager for the REIT’s IPO nine months after it launched. At that time, O&O expenses well exceeded reasonable limits under FINRA Rules, and Cabot Lodge submitted a plan to FINRA to address them. However, Firm personnel ignored their duty under the plan and FINRA Rules to adopt controls and to monitor O&O expenses. The amount of overall O&O expenses well exceeded 15 percent of the gross offering proceeds, and the underwriting compensation portion of the O&O expenses well exceeded 10 percent of the gross offering proceeds excluding securities purchased through the reinvestment of distributions. As a result, Cabot Lodge participated in a public offering in which the O&O expenses were not fair and reasonable in violation of FINRA Rules 2310(b)(4) and 2010. In addition, Cabot Lodge participated in the IPO even though restricted shares of the REIT’s common stock awarded to persons related to the Firm were not disclosed in certain offering prospectuses as items of underwriting compensation, and the Firm did not have reasonable grounds to believe that such items were disclosed, in violation of FINRA Rules 5110(c), 2310(b)(3), and 2010. These violations resulted from Cabot Lodge’s failure to establish, maintain and enforce a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA Rules 5110 and 2310, in violation of FINRA Rules 3110(a) and (b) and 2010, and NASD Rule 3010(a) and (b). Finally, in violation of FINRA Rules 2111(a) and 2010, Cabot Lodge did not have a reasonable basis to believe that its January 2016 recommendation that an elderly customer invest in the REIT was suitable based upon his investment profile.
Gana Weinstein LLP has successfully litigated broker disputes through verdict or settlement. We represent both individuals and institutions throughout the country in FINRA arbitration, as well as commercial litigation in state and federal courts. Our consultations are both free and thorough and our securities litigation attorneys can help you uncover wrongful activity in your account.