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Cambridge Investment Research

Kurta Law is investigating recommendations by Cambridge Investment Research, Inc. brokers. The brokerage firm is located in Fairfield, Indiana. Cambridge Investment Research has also done business under the name: Jordan Creek Financial Services and Fairfield Global Investments.

Cambridge Investment Research (CRD #: 39543) brokers may recommend investments, but they do not monitor or manage your account. Cambridge Investment Research is affiliated with Cambridge Investment Research Advisors, which offers advisory services.

  • Registered Investment Advisors with Cambridge Investment Research Advisors are fiduciaries, meaning they are required to act in their investor’s best interests.
  • Brokers registered with Cambridge Investment Research are not fiduciaries, and investors should keep this in mind when they review their possible conflicts of interest.

Make sure you know what type of financial professional you are working with, as well as any conflicts of interest that arise from how they make money.

Product Types

The following product types may come with commissions and fees that could take away from the investment. You can see more detailed descriptions of these investments and their associated commissions and fees in the Cambridge Investment Research Form CRS Supplement.

Conflicts of Interest and Fees

Securities transactions come with per-transaction fees, also called “commissions.” These fees create an incentive for Cambridge Investment Research brokers to encourage you to trade more frequently.

Cambridge Investment Research has also directed its custodians to mark-up the following non-transaction fees related to:

  • Account inactivity
  • Account maintenance
  • Account termination
  • Bounced checks
  • Check writing
  • Debit card utilization
  • Margin extension and interest
  • Non-purpose loan interest
  • Paper statements and confirmations
  • Postage
  • Reorganization
  • Safekeeping
  • Stop payments
  • Transfers

Regulatory Actions

There are 15 regulatory actions on Cambridge Investment Research’s FINRA BrokerCheck record. Kurta Law has chosen four recent regulatory actions to highlight. You can see the full description of every regulatory action on the firm’s detailed BrokerCheck record.

$10,000,000 SEC Fine

On February 9, 2024, the SEC alleged that Cambridge Investment Research brokers used off-channel communications to discuss the business of the broker-dealer. The firm allegedly failed to preserve these communications, in violation of regulatory rules. The SEC imposed a fine of $10,000,000.

$250,000 SEC Fine Following Alleged Violations of Regulation S-P

According to an SEC Order dated August 30, 2021, Cambridge Investment Research failed to adopt written policies and procedures reasonably designed to safeguard customer records and information. The SEC alleges that from January 2018 through July 1, 2021, cloud-based email accounts of over 121 Cambridge Independent Contractor representatives were taken over by third parties resulting in the exposure of at least 2,177 customers’ personally identifiable information.

$400,000 Fine and $3.1 Million Return of Funds to Customers

On March 29, 2021, Cambridge Investment Research entered into an Acceptance, Waiver, and Consent agreement (AWC) with the Financial Industry Regulatory Authority (FINRA). FINRA alleged that Cambridge Investment Research failed to supervise its representatives’ recommendations of an alternative mutual fund called LJM. The firm allegedly allowed the sale of the fund on its platform without conducting reasonable due diligence and without a sufficient understanding of its risks and features. The fund relied in part on a risky strategy involving buying uncovered options.

On March 29, 2018, LJM was liquidated and dissolved, resulting in investors losing approximately 80% of their investment.

As part of the terms of the AWC, Cambridge Investment Research consented to pay a $400,000 fine and a restitution payment of $3.1 million.

$150,000 FINRA Fine Regarding Short-Term Trading of Mutual Funds and Unit Investment Trusts

There is a similar Acceptance, Waiver, and Consent agreement on Cambridge Investment Research’s record, dated December 31, 2019. FINRA alleged that the firm consented to the sanctions and the entry of findings that it failed to reasonably supervise short-term trading of UITs and mutual fund Class A shares. Short-term trading can result in excessive commissions for brokers and overpayments for customers.

As part of the terms of the AWC, the firm was censured and fined $150,000.

Cambridge Investment Research Advisors with Records of Alleged Misconduct

Cambridge Investment Research works with brokers who have investor disputes on their BrokerCheck records. Kurta Law is aware of the following current or former Cambridge Investment Research Advisors brokers with misconduct records, but this is not necessarily a complete list. Contact a securities attorney if you have concerns about your broker’s conduct.

Kurta Law Can Help

Investors who lost money working with a Cambridge Investment Research broker should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.