INVESTOR DEFENSE LAW BLOG

Posts in Category: “Cape Securities Inc”

Cape Securities’ CCO Michael Lovett Establishes Inadequate Supervisory System That Leads to Wire Transfer Fraud

Posted on Sep 10th, 2015

Michael Allen Lovett of Lawrenceville, Georgia was recently fined $5,000 and suspended for six months, according to Financial Industry Regulatory Authority, or FINRA.

Reports detail that Lovett — the Chief Compliance Officer (CCO) at Cape Securities, Inc. — was grossly negligent in keeping his firm compliant. His lax atmosphere engendered an unethical environment that lead to over $630,000 of illegally transferred customer funds, all under his watch.


Cape Securities’ Representative Caught in Fraudulent Wire Transfer Activity

Posted on Aug 31st, 2015

Recent reports from Financial Industry Regulatory Authority, or FINRA, detail a macabre series of fraudulent wire transfers. From February through September 2012, a registered representative of Cape Securities, Inc., a Georgia-based brokerage firm, misappropriated over $630,000 via forging signatures, including signatures of the recently deceased. He transferred those funds for personal use into the accounts of seven different customers as well as his own branch’s operations account.


Most Popular Posts


What does a Receivership Do? An Investor’s Guide to How Receivers Recover Investment Losses While (Hopefully) Avoiding Bankruptcy

Posted on Oct 4th, 2016

If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.

These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.

We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.


Three Signs You Should Sue Your Financial Advisor For Negligence Or Malpractice

Posted on Dec 24th, 2015

Some investor claims are easy to see, such as when money is simply missing from an account or a financial advisor has been arrested for securities fraud. In other cases, a financial advisor has been negligent. The financial advisor did not commit fraud, but he did make mistakes that caused investment losses. These cases are more difficult for an investor to spot. Here are the three things we see in most of the investor claims we file against financial advisors for malpractice or negligence.


The One Reason Why Variable Annuities Are Almost Always A Bad Idea

Posted on Jun 23rd, 2015

Financial advisors love to sell variable annuities. The reason is simple—commissions of up to 8%. If a financial advisor can sell you a $200,000 variable annuity, that means commissions of up to $16,000. Not bad for a day’s work!

Unfortunately, commissions are just about the only thing that is simple about variable annuities.

The one reason why variable annuities are almost always a bad idea is that they are too complicated for ordinary investors (and normal people in general) to understand. Seriously, have you ever tried to read a variable annuity policy? Here is just one example from an actual policy. Try to stay awake through this, because there is a lot more you urgently need to know about variable annuities:


Can I “Sue” My Financial Advisor?

Posted on May 6th, 2015

If your financial advisor has caused investment losses, you may want to sue your financial advisor. For better or for worse, you may instead be forced out of court and into a FINRA arbitration. This post explains why securities litigation frequently ends up in FINRA arbitration, and what you can expect from the FINRA arbitration process.


How to Report Investment Fraud

Posted on May 5th, 2015

Without an investment fraud lawyer, you can easily spend hour filing investment fraud reports with federal, state, and local agencies. While doing so is often a good idea, the payout can be low.


live chat software