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Sean Kane Fired from Cambridge Investment Research Following SEC Complaint

Sean Kane (CRD #: 5778281), a broker previously registered with Cambridge Investment Research, is involved in a pending SEC complaint, according to his BrokerCheck record, accessed on April 11, 2023. Read on to learn more about his alleged conduct as a broker.

Termination from Cambridge Investment Research

On March 2, 2023, Sean Kane was fired from Cambridge Investment Research following a complaint by the SEC.

Pending SEC Complaint

On March 1, 2023, the Securities and Exchange Commission filed a civil complaint against Sean Kane alleging that he defrauded clients and breached his fiduciary duty from at least October 2018 through February 2021.

According to the complaint, Sean Kane was an investment adviser with an investment advisory firm during this period, providing services to more than 100 clients whose total assets exceeded $27 million.

His firm allegedly terminated Sean Kane on February 23, 2021, for violating firm policies and procedures.

The SEC alleges that Sean Kane repeatedly defrauded and breached his fiduciary duty to his clients by:

  • Misrepresenting his termination from the firm as a voluntary action
  • Failing to inform clients of his termination and inability to continue effecting transactions in his accounts
  • Falsely claiming he was still associated with the firm and could continue to execute clients’ transactions
  • Impersonating clients in phone calls to his former employer in order to effect transactions

The SEC complaint alleges that Sean Kane violated the anti-fraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. This complaint is currently pending.

Investment Advisers Act of 1940

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

Termination from Waddell & Reed

On February 23, 2021, Sean Kane was fired from Waddell & Reed for allegations that he violated firm policies and procedures regarding client data privacy and client signatures, communications with the public, and outside business activities.

Regulation S-P

Firms are required to safeguard their clients’ personal information under Regulation S-P. Among other things, this regulation prohibits firms from disclosing client information to unaffiliated third parties without proper disclosure.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2210

FINRA Rule 2210 defines how firms and brokers are permitted to communicate with the public. Firms must approve retail communications before their publication, and some communications must be filed with FINRA’s Advertising Regulation Department.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to seek approval from their firm before engaging in outside business activities.

Background Information

Sean Kane has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

In the past, he has worked for the following firms:

  • Cambridge Investment Research (CRD#:39543)
  • Waddell & Reed (CRD#:866)
  • Resource Securities (CRD#:133022)
  • Cohen & Steers Securities (CRD#:29258)
  • Prudential Investment Management Services (CRD#:18353)
  • Lincoln Financial Distributors (CRD#:145)

Kurta Law Can Help

If you worked with Sean Kane and you have concerns about your investments, please contact us today at 877-600-0098 or 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.