Cabot Lodge Securities: 1 Regulatory Complaint
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 24, 2019 indicate that New York-based brokerage firm Cabot Lodge Securities has received a regulatory sanction in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Cabot Lodge Securities (CRD# 159712).
Established in Delaware in 2011, Cabot Lodge Securities is headquartered in New York, New York and registered with 52 US states and territories. Organized as a limited liability company, the firm’s fiscal year ends in December. It conducts 17 types of business, including: Broker or dealer retailing corporate equity securities over the counter; broker or dealer selling oil and gas interests; underwriter or selling group participant; mutual fund retailer; municipal securities broker; real estate syndicator; broker or dealer selling oil and gas interests; put and call broker or dealer or option writer; private placements of securities; and broker or dealer selling interests in mortgages or other receivables. According to its BrokerCheck report, Cabot Lodge Securities has received four regulatory sanctions.
In 2015 FINRA sanctioned Cabot Lodge Securities in connection to allegations it transacted securities business on more than one occasion while falling below its required minimum net capital. In connection with these findings, the firm was censured and issued a fine of $20,000.
For reference, FINRA rules require member broker-dealer firms to maintain at all times “net capital no less than the greater of the highest minimum requirement applicable to its ratio requirement” under certain provisions. They are required to maintain this minimum net capital before, during and after engaging in proprietary securities transactions; they are required to have enough net capital to meet “haircut requirements of the Capital Rule” before they take proprietary positions, even in cases where the firm intends to liquidate or cover those positions before trading ends on that day; and they are “expected to be able to demonstrate moment to moment compliance with the Capital Rule.” According to FINRA’s rule, a broker-dealer firm’s required minimum net capital can be identified by “adding the amount of net capital required for compliance by each consolidated subsidiary subject to the Rule to the minimum dollar net capital requirement of the parent broker-dealer.” FINRA’s rules specific further than inactive exchange members are excluded from these net capital requirements if they are not participating in securities business, and that registered traders are also required to maintain minimum net capital if they are trading within their own account, excepting registered options traders.
If you or someone you know has lost money investing with Cabot Lodge Securities, call the experienced attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited by law, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.