Securities Lawyers Blog
Investors researching CFD Investments, Inc. often want to know about the firm’s regulatory history before deciding whether to speak with a lawyer. This page summarizes the FINRA disciplinary actions in which CFD Investments, Inc. was named. The securities fraud attorneys at Gana Weinstein LLP represent investors in claims against brokerage firms and financial advisors for investment fraud, unsuitable investment recommendations, excessive trading, and failure to supervise, and we can review the firm’s record together with your account statements to determine whether you have a claim.
CFD Investments is a broker-dealer offering equities, mutual funds, government securities, variable life insurance and annuities, and tax-advantaged investments, with clearing through National Financial Services. Incorporated in Indiana in 1986 and headquartered in Kokomo, the family-owned firm operates under common control with the registered investment adviser Creative Financial Designs.
CFD Investments, Inc. – By the Numbers:
- CRD #: 25427
- Regulatory Events: 8
- Broker Employees: 173
CFD Investments, Inc. – In the News:
FINRA v. CFD Investments, Inc. (Case #2018057457101) – In November 2014, CFD, through Bahrenburg, approved an oil and gas private placement offering for sale to its customers. The issuer, Payson Petroleum, Inc. was the subject of an April 2014 jury verdict in excess of $9 million and was in financial distress. From March 2015 to February 2016, CFD sold interests in Payson to 31 of its retail customers, without conducting reasonable due diligence into the Payson offering. By failing to conduct reasonable due diligence into the Payson offering, CFD and Bahrenburg violated NASD Rule 3010, and FINRA Rules 3110 and 2010. In addition, CFD sold interests in Payson to its customers without having a reasonable basis for making recommendations to purchase this private placement. CFD customers who invested in Payson lost their investments when Payson filed for bankruptcy in 2016. Through this conduct, CFD violated FINRA Rules 2111 and 2010. CFD also failed to disclose to its customers that it received additional compensation from Payson beyond the disclosed sales compensation. This conduct violated FINRA Rule 2010.
FINRA v. CFD Investments, Inc. (Case #2016048224201) – Between July 18, 2014 and July 18, 2016 (the “Relevant Period”), CFD failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that representatives’ recommendations of variable annuities complied with applicable securities laws and regulations and FINRA Rules. As a result, CFD violated FINRA Rules 2330(d) and (e), NASD Rule 3010 (for conduct before December 1, 2014), FINRA Rule 3110 (for conduct on and after December 1, 2014), and FINRA Rule 2010.
FINRA v. CFD Investments, Inc. (Case #2014039216501) – From October 2012 to July 2014, CFD failed to establish, maintain, and enforce a reasonable supervisory system designed to ensure the review of its representatives’ sales of leveraged and inverse exchange-traded funds (“Non-Traditional ETFs”), in violation of NASD Rule 3010 and FINRA Rule 2010.
Gana Weinstein LLP represents investors nationwide, including customers of CFD Investments, Inc., in FINRA arbitration claims to recover investment losses caused by unsuitable investments, failure to supervise, and other broker misconduct. Our consultations are free and there is no obligation.