Securities Lawyers Blog
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.