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Richard Diamond Barred by SEC

Richard Diamond (CRD #: 5073217), a broker formerly registered with Cambridge Investment Research, has been barred by the SEC, according to his BrokerCheck record, accessed on January 10, 2025. If you have questions about his alleged conduct as a broker, read on.

Bar by SEC

On December 9, 2024, the Securities and Exchange Commission filed cease-and-desist proceedings against Richard Diamond, alleging that he acted as an unregistered broker-dealer in connection with certain fraudulent securities offerings made by The Heartland Group Ventures, LLC and its affiliates.

The SEC alleged that between at least October 2018 and December 2021, The Heartland Group Ventures, Heartland Production and Recovery LLC, six other affiliated entities, and four affiliated individuals raised approximately $122 million from over 700 investors through fraudulent oil and gas offerings. These securities were allegedly unregistered without qualifying for exemption from registration.

From June 2019 to December 2021, Richard Diamond allegedly acted as a broker-dealer in connection with three of these offerings, raising approximately $9.375 million from eight investors both directly and through a feeder fund that he owned.

The SEC alleged that Richard Diamond was not registered as a broker-dealer during this period, but nonetheless solicited investors, provided advice, and assisted investors in completing investment documents and fund transfers in connection with the Heartland Offerings.

The SEC alleged that Richard Diamond violated Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a)(1) of the Securities Exchange Act of 1934.

Securities Act of 1933

Sections 5(a) and 5(c) of the Securities Act of 1933 prohibit the sale of unregistered securities without filing a registration statement.

Securities Exchange Act of 1934

Section 15(a) of the Securities Exchange Act of 1934 prohibits unregistered brokers and dealers from engaging in or inducing the purchase or sale of securities.

Sanctions

The SEC permanently barred Richard Diamond from participating in penny stock offerings and barred him from associating with the following:

  • Brokers
  • Dealers
  • Investment advisers
  • Municipal securities dealers
  • Municipal advisors
  • Transfer agents
  • Nationally recognized statistical rating organizations (NRSROs)

However, the SEC also granted him the right to apply for reentry in five years with regard to both of these bars. These sanctions took effect on December 9, 2024.

The SEC also imposed a $490,250 disgorgement and $52,668 penalty.

Lastly, the SEC prohibited Richard Diamond from serving as any of the following:

  • Employee
  • Officer
  • Director
  • Member of an advisory board
  • Investment adviser, depositor, or principal underwriter for a registered investment company or person affiliated with an investment adviser, depositor, or principal underwriter

Civil Lien

On May 7, 2015, Richard Diamond incurred a civil lien of $230,474.50.

Background Information

Richard Diamond has passed the following exams:

  • Securities Industry Essentials Examination – SIE
  • General Securities Representative Examination – Series 7
  • Futures Managed Funds Examination – Series 31
  • Uniform Combined State Law Examination – Series 66
  • Uniform Securities Agent State Law Examination – Series 63

He has also worked for the following firms:

  • Cambridge Investment Research (CRD#:39543)
  • MML Investors Services (CRD#:10409)
  • AXA Advisors (CRD#:6627)
  • Sanford C. Bernstein & Company (CRD#:104474)

Kurta Law Can Help

If you worked with Richard Diamond 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 that 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.