Articles Tagged with Cabot Lodge Securities

shutterstock_113872627-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Ahmed Gheith (Gheith), in August 2017, was terminated by his employer Paulson Investment Company, LLC (Paulson Investment) after the firm alleged that Gheith was terminated subsequent to discovery of violations of firm supervisory procedures, failure to provide honest answers on annual questionnaires, violations of FINRA Rule 3280, and due to initiation of customer arbitration alleging fraud, negligence, and unjust enrichment.  The firm referenced that the product involved was a promissory note

The arbitration referenced in the termination was filed in April 2017 and alleged that Gheith committed fraud, negligent misrepresentations, negligence, and unjust enrichment causing $1,000,000 in a promissory note.

At this time it is unclear the extent and scope of Gheith’s securities violations and outside business activites.  Gheith’s CRD fails to list any other activities.  The firm’s allegations concerning promissory notes, a private securities transaction, –is known in the industry as “selling away”.

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shutterstock_85873471-300x200Calton & Associates, Inc. (Calton) broker Nicolas Toadvine (Toadvine) has been subject to numerous complaints over non-traded REITs and real estate related investments.  According BrokerCheck Lynn has been subject to 12 customer complaints in total and declared bankruptcy in 2013.  The securities lawyers of Gana LLP are investigating the customer complaints against Toadvine.

Many of the complaints concern private placements and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs).

All of these investments come with high costs and historically have underperformed even safe benchmarks, like U.S. treasury bonds.  For example, products like oil and gas partnerships, REITs, and other alternative investments are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed.  However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them.  Further, investor often fail to understand that they have lost money until many years after agreeing to the investment.  In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.

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