Cambridge Advisor Suspended For Unauthorized Trading

Kermit Gordon Cable Jr, of Arlington Texas is a stockbroker formerly registered with Cambridge Investment Research and investment advisor representative formerly registered with Cambridge Research Advisors Inc. who is subject of a Texas State Securities Board Order which suspended him in an investment advisory representative capacity for one-hundred fifty days founded on allegations that he improperly traded in customer accounts. In the Matter of the Investment Advisor Representative Registration of Kermit Gordon Gable Jr. Order No. REG17-SUS-03 (Apr. 10 2017).

According to the Order, Cable was associated with the Cambridge firms between February 16, 2012 and December 1, 2016, where in his advisory capacity he utilized a block trading account to effect purchases and sales of securities. Evidently, the account enabled him to buy or sell securities for several of his advisory customers at once through placing an aggregate order of the securities. Apparently, the trades were supposed to be allocated among those participating customers at the time that the block trade was filled.

The AWC stated that Cable utilized the block trading account to effect substantial trades; his active trading strategy was supported by it. Apparently, at least two customer accounts were subject of trades in which Cable also traded for his own account. Texas State Securities Board concluded that the allocations of trades had not been distributed evenly to customers’ accounts and Cable’s account. Specifically, some trades involved allocations of securities to Cable’s account only, where in other circumstances, he would allocate trades to the customers’ accounts and not his or allocate trades to only one customer’s account instead of another.

The Order stated that Cambridge Advisors actually set forth specific requirements for its adviser representatives that took part in block trading. Those requirements evidently included a written statement to be furnished by Cable which detailed the customers’ accounts to be affected by the block trade and what allocation would be utilized. Evidently, Cable failed to comply with the firm’s policies in that regard because he never provided any written statement detailing the transactions. Texas State Securities Board found that Cable’s conduct amounted to inequitable practices in providing investment advisory services, which resulted in his suspension having been imposed.

Cable was terminated from Cambridge Investment Research, Inc. on November 29, 2016, based upon accusations that he traded improperly in customers’ accounts.

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer

Guiliano Law Group

Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.

For more information concerning common claims against stockbrokers and investment professionals, please visit us at

To learn more about FINRA Securities Arbitration, and the legal process, please visit us at