Cambridge Stockbroker Sanctioned For Deceptive Practices

Dale Edward Wright of Henrico Virginia a stockbroker formerly registered with Cambridge Investment Research has been fined $50,000.00 by the Commonwealth of Virginia State Corporation Commission Bureau of Insurance according to an Order based upon findings that Wright inappropriately recommended that customers purchase insurance policies and use them as investment vehicles; conduct violative of Code of Virginia Sections 38.2-502 (false or misleading statements and false advertising) and 38.2-1831 as well as 14 VAC 5-41-30. Case No. INS-2019 (July 22, 2019).

Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Wright has been identified in nine more customer initiated investment related disputes which pertain to allegations of his misconduct when he was employed by Cambridge Investment Research and National Planning Corp. Specifically, on March 31, 2016, a customer initiated investment related complaint concerning Wright’s conduct was settled for $50,000.00 in damages based upon accusations of the customer having been induced into purchasing bad insurance policies by way of Wright’s unfounded statements.

Wright is also referenced in a customer initiated investment related arbitration claim which was resolved for $70,000.00 in damages supported by allegations that the customer’s account was administered negligently; contractual and fiduciary obligations to the customer had not been complied with; transactions violated the Virginia Securities Act; and Cambridge Investment Research Inc. failed to supervise Wright’s activities. FINRA Arbitration No. 17-00664 (Apr. 17, 2018).

Another customer initiated investment related arbitration claim concerning Wright’s activities was settled for $190,000.00 in damages founded on accusations that the customer was induced into purchasing insurance policies based upon being inappropriately advised by Wright that the customer’s insurance policy could be borrowed against to fund securities purchases; and bad recommendations were made about securities during the period in which Wright was associated with Cambridge Investment Research. FINRA Arbitration No. 18-00044 (Mar. 7, 2019).

Wright is the subject of another customer initiated investment related arbitration claim which was resolved for $65,000.00 in damages based upon allegations of a terrible investment strategy being recommended by Wright which involved the leveraging of the customer’s home equity to buy life insurance which would then be borrowed against for making investments. FINRA Arbitration No. 18-01749 (Apr. 4, 2019). Also, on April 4, 2019, a customer initiated investment related complaint involving Wright’s behavior was settled for $27,500.00 in damages supported by accusations of Wright pushing an unsuitable investment strategy.

In addition, on July 22, 2019, a customer initiated investment related complaint regarding Wright’s conduct was resolved for $12,700.00 in damages founded on allegations that Wright made misrepresentations about a life insurance policy; and placed the customer in a policy which failed to be suitable. Wright is referenced in another customer initiated investment related arbitration claim which was settled for $40,000.00 in damages based upon accusations that trades were not suitable for the customer; fiduciary obligations had been violated; false or misleading statements were made about investments; and the customer had been defrauded on oil and gas products. FINRA Arbitration No. 18-04218 (Oct. 2, 2019).

Wright’s association with Cambridge Investment Research was terminated on September 25, 2019.