Investors Capital Corp. in Trouble. Again.

The bad news for Investors Capital Corp., an independent brokerage firm, just keeps coming. Recently one of its financial advisors, Cyrus Lamont Hancock of Marietta, Georgia, agreed to be permanently barred from the securities industry.

What did Mr. Hancock do? According to a settlement agreement Mr. Hancock signed with the Financial Industry Regulatory Authority (FINRA), Mr. Hancock took $11,000 worth of customer funds and deposited it in his own bank account. The customers did not approve!

Perhaps Mr. Hancock’s actions should not have been such a big surprise to Investors Capital. He pled guilty to felony theft in 1998. He disclosed a $62,000 tax lien a few years ago. Perhaps the better question is, why did Investors Capital ever hire Mr. Hancock in the first place?

Unfortunately, the answer to that question may be that Mr. Hancock’s checkered background fits right in at Investors Capital Corp.

In 2013, Investors Capital Corp. settled allegations that it broke rules regarding telemarketing while selling high risk, high commission non-traded REITs and unit investment trusts (UITs), investments that FINRA concluded were unsuitable for the investors who bought them.

In 2012, Investors Capital Corp. settled allegations that it charged excessive markups of over $1,000 on the sale of corporate and municipal bonds.

In 2011, Investors Capital Corp. settled allegations that it did not adequately supervise the sale of high risk, high commission “alternative” investments. This supervisory failure was particularly egregious because Investors Capital Corp. generated more than 10% of its sales from the sale of alternative investments, a much higher percentage than most mainstream brokerage firms.

If you have questions about investment losses, the securities litigation attorneys at Investor Defense Law LLP may be able to help, and offer free consultations.

Investor Defense Law LLP is a law firm dedicated to helping investors in California, Georgia, and Washington State recover investment losses. We understand investment fraud and know how to sue investment advisors, brokerage firms, and financial advisors. To learn more, contact an investment fraud attorney at 800.487.4660.