Cape Securities Inc.

Broker John Westbrook in Cape Securities INC. Firm Has Customer Complaint

March 22, 2026 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that Broker John Westbrook (Westbrook) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Westbrook was employed by Cape Securities INC. at the time of the activity. If you have been a victim of Westbrook’s alleged misconduct our firm may be able to assist you in recovering funds.

FINRA BrokerCheck shows a final customer complaint on November 10, 2020.

Without admitting or denying the findings, Westbrook consented to the sanctions and to the entry of findings that he participated in private securities transactions totaling $350,335 without prior disclosure to or approval from his member firm. The findings stated that Westbrook solicited investors to purchase securities of a company that represented itself as a structured cash flow investment. Westbrook received a total of $14,013 in commissions in connection with his sales of the company’s securities. Later, the company ceased business, owing nearly $300 million in unpaid investor payments. In a subsequent indictment, the United States charged the company and its owner with conspiracy to engage in mail and wire fraud related to the company’s operations.

There are Recent Customer Complaints with Broker Nicholas Schlagheck in Firm Cape Securities INC.

August 24, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Nicholas Schlagheck (Schlagheck), previously associated with Cape Securities INC., has at least one disclosable event. These events include one customer complaint, alleging that Schlagheck recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $263,307.00 on May 20, 2025.

Customer alleges that the CLO Interval Mutual Fund investment was highly concentrated and unsuitable. The investments occurred between June 15, 2023 and July 16, 2024.

Broker William Morris in Cape Securities INC. Firm Has Customer Complaint

August 15, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker William Morris (Morris), currently associated with Cape Securities INC., has at least one disclosable event. These events include one customer complaint, alleging that Morris recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $200,000.00 on June 23, 2025.

The Claimant alleges that she made investments in GWG Holdings, Inc. (“GWG”) L Bonds at the recommendation of William Morris, a registered representative at Cape Securities. On February 5, 2021, she invested $100,000 in 2-year L Bonds and on March 9, 2021, she invested $50,000 in 3-year L Bonds and $50,000 in 7-year L Bonds. Just over a year after her investments, GWG filed for bankruptcy on April 20, 2022. The Claimant alleges that she has suffered a loss and has been damaged by the recommendation made by Mr. Morris.

Broker William Morris in Cape Securities INC. Firm Has Customer Complaint

August 5, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker William Morris (Morris), currently associated with Cape Securities INC., has at least one disclosable event. These events include one customer complaint, alleging that Morris recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $200,000.00 on June 23, 2025.

The Claimant alleges that she made investments in GWG Holdings, Inc. (“GWG”) L Bonds at the recommendation of William Morris, a registered representative at Cape Securities. On February 5, 2021, she invested $100,000 in 2-year L Bonds and on March 9, 2021, she invested $50,000 in 3-year L Bonds and $50,000 in 7-year L Bonds. Just over a year after her investments, GWG filed for bankruptcy on April 20, 2022. The Claimant alleges that she has suffered a loss and has been damaged by the recommendation made by Mr. Morris.

Broker Nicholas Schlagheck in Cape Securities INC. Firm Has Customer Complaint

July 24, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Nicholas Schlagheck (Schlagheck), currently associated with Cape Securities INC., has at least one disclosable event. These events include one customer complaint, alleging that Schlagheck recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $15,696.80 on May 15, 2025.

Customer claims that the investment in Eagle Point Credit Interval Fund was misrepresented and unsuitable due to its risk. Additionally, the customer claims that she never met with or spoke to Nicholas Schlagheck and that all dealings were with John Schlagheck, Nicholas’ father, who is barred from the industry.

Broker Danny Strain in Cape Securities INC. Firm Has Customer Complaint

July 1, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Danny Strain (Strain), currently associated with Cape Securities INC., has at least 2 disclosable events. These events include 2 customer complaints, alleging that Strain recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $500,000.00 on November 01, 2023.

Misrepresentation and misleading information regarding investments.

Broker Karen Geiger in Cape Securities INC. Firm Has Customer Complaint

June 21, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Karen Geiger (Geiger), previously associated with Cape Securities INC., has at least 2 disclosable events. These events include 2 customer complaints, alleging that Geiger recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $190,000.00 on February 23, 2024.

Claimant alleges misrepresentation of the investment, failure to perform due diligence, unsuitable nature of investments, failure to disclose degree of risk including extreme liquidity risk, fraud, negligent supervision, violations of federal securities laws, violations of Ohio securities laws, breach of contract, breach of duty of care, breach of fiduciary duty. The time period of such activities: 7 /2015 through 10/2020.

There are Recent Customer Complaints with Broker Samuel Phillips in Firm Cape Securities INC.

May 24, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Samuel Phillips (Phillips), currently associated with Cape Securities INC., has at least one disclosable event. These events include one customer complaint, alleging that Phillips recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on March 27, 2024.

Customer alleges misrepresentation of product and risks, over concentration, negligence, lack of due diligence and supervision.

There are Recent Customer Complaints with Broker Peter Dorn in Firm Cape Securities INC.

May 18, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Peter Dorn (Dorn), currently associated with Cape Securities INC., has at least one disclosable event. These events include one customer complaint, alleging that Dorn recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $170,000.00 on March 21, 2025.

The Claimants, [REDACTED] and KM Partnership, allege that between December 1, 2017 and December 1, 2020, they invested in GWG Holdings, Inc. (‘GWG’) L Bonds at the recommendation of Peter Dorn, a registered representative at Cape Securities. During that time, the Claimants purchased a total of $170,000 worth of L Bonds, consisting of: (1) a $20,000 L Bond issued on December 1, 2017, maturing on November 30, 2024; (2) two $25,000 L Bonds issued on September 1, 2019, one maturing on August 31, 2024 and the other maturing on August 31, 2026; (3) two $50,000 L Bonds, one maturing on November 25, 2025 and\<char_lb_r>\, the other maturing on November 30, 2025. GWG filed for bankruptcy on April 20, 2022. The Claimants allege that because of Dorn’s recommendation, they were damaged.

There are Recent Customer Complaints with Broker John Schlagheck in Firm Cape Securities Inc.

February 17, 2025 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker John Schlagheck (Schlagheck), previously associated with Cape Securities Inc., has at least 7 disclosable events. These events include 6 customer complaints, one regulatory, alleging that Schlagheck recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on January 06, 2025.

Respondent Schlagheck failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.