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Corbin Lambert Barred by SEC

Dec 22, 2022 Barred Broker

Corbin Lambert (CRD #: 3191042), a broker formerly registered with Securities America, has been barred by the SEC, according to his BrokerCheck record, accessed on December 13, 2022. Read on if you have questions about his alleged conduct as a broker.

Bar by SEC

On September 20, 2022, the SEC barred Corbin Lambert following a judgment entered against him on January 24, 2022, which permanently enjoined him from future violations of the following regulations:

  • Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
  • Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933
  • Sections 206(1) and (2) of the Investment Advisers Act of 1940

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of manipulative, deceptive, and otherwise fraudulent practices relating to the securities business. Rule 10b-5 specifically prohibits false statements and omissions of fact that mislead investors.

Securities Act of 1933

Section 17(a)(1) and (a)(2) of the Securities Act of 1933 bans deceptive schemes or practices to defraud customers and the use of untrue statements or omissions of material fact to obtain money or property.

Investment Advisers Act of 1940

Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 prohibit the use of fraudulent and deceptive schemes or practices.

SEC Civil Actions

On September 28, 2020, the SEC filed a civil suit alleging that Corbin Lambert engaged in a fraudulent “cherry-picking” scheme as an investment adviser representative working at Continuum Financial.

From at least January 2017 through March 2018, Corbin Lambert allegedly block-purchased securities in the form of options in his firm’s omnibus account, but did not allocate these securities to individual client accounts until he observed the securities’ price changes for the rest of the trading day. He allegedly used this knowledge to disproportionately allocate profitable trades to his personal account and unprofitable trades to his clients’ accounts.

Alleged Misrepresentations

The SEC further alleged that Corbin Lambert also made material misrepresentations to his clients in Continuum Financial’s Forms ADV, which he personally reviewed and approved in his time as the firm’s chief executive and chief compliance officer.

Corbin Lambert’s alleged cherry-picking of securities violated representations that the firm would ensure the fairness of trades, not engage in trading that would disadvantage clients, and would implement protocols to prevent conflicts of interest. The SEC further alleged that Continuum Financial did not document Corbin Lambert’s options trading or conduct reviews of block trading in its omnibus account.

Alleged Fraud Detection by Charles Schwab

In February 2018, Charles Schwab & Company, as Continuum Financial’s custodian broker-dealer for client accounts, allegedly became aware of Corbin Lambert’s trading activity via their fraud alert system. Corbin Lambert allegedly then misled his partners at Continuum Financial as to why Charles Schwab had contacted him.

In April 2018, Charles Schwab allegedly terminated Continuum Financial from its trading platform and Corbin Lambert was allegedly removed as CEO of Continuum Financial by his partners.

The SEC concluded that, through this alleged cherry-picking scheme and misrepresentations, Corbin Lambert violated the following regulations:

  • Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
  • Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933
  • Sections 206(1) and (2) of the Investment Advisers Act of 1940

Sanctions

Corbin Lambert was subject to the following sanctions

  • $81,777 disgorgement
  • Other monetary penalty
  • Injunction against future violations of the Securities Exchange Act of 1934, Securities Act of 1933, and Investment Advisers Act of 1940
  • Unspecified undertakings

Background Information

Corbin Lambert has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination
  • Series 26 – Investment Company Products/Variable Contracts Principal Examination

He previously worked for the following firms:

  • Securities America (CRD#:10205)
  • MML Investors Services (CRD#:10409)
  • Securian Financial Services (CRD#:15296)
  • Pruco Securities (CRD#:5685)

Kurta Law Can Help

If you worked with Corbin Lambert and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.