Erez Law is currently investigating former Cabot Lodge Securities LLC broker David Arlein (CRD# 7145), who is accused of GWG Holdings Inc. L Bonds investment losses. He was registered with Cabot Lodge Securities LLC in Boca Ration, Florida, from 2014 to 2022. Previously, he was registered with Fintegra, LLC in Boca Raton, Florida, from 2009 to 2014.
In May 1981, the Attorney General Commissioner of New Jersey opened an investigation & subsequent complaint based upon his position as the president of an intercontinental subsidiary. He agreed to not to split insurance in New Jersey and to surrender his license for one year.
In June 2002, the state of Florida sanctioned him to a cease and desist and a 2-year-registration agreement related to the following allegations: “unsuitable recomendation, unregistered activity.”
In October 2016, the State of Florida, Department of Financial Services suspend him based on allegations that he solicited business without proper licensure.
David Arlein Customer Complaints
He has been the subject of 22 customer complaints between 1999 and 2023, according to his CRD report. The most recent complaints were regarding:
July 2023. “Claimants alleging breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, failure to supervise, and negligence – violation of Regulation Best Interest regarding purchases of GWG L Bonds during the year 2020.” The customer is seeking $300,000 in damages, and the case is currently pending.
January 2023. “Claimants alleging breach of fiduciary duty, negligence, negligent supervision, fraud, breach of contract, violation of Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 of the Securities, and Exchange Commission, violation of the Florida Securities and Investor Protection Act regarding purchase of GWG.” The customer is seeking $500,000 in damages, and the case is currently pending. The complaint took place while he was registered with Cabot Lodge Securities LLC, and it was regarding private placement investment losses.
October 2022. “The claimant alleges the a breach of contract and warranties, violation of state securities statutes, breach of fiduciary duty, negligence and gross negligence, misrepresentation/omission, unjust enrichment, failure to supervise, common law and statutory claims and damages, vicarious and control personal liability.” The customer sought $300,000 in damages, and the case was settled for $200,000. The complaint took place while he was registered with Cabot Lodge Securities LLC, and it was regarding non-traded real estate investment trusts (REITs), business development companies (BDCs), unit investment trusts (UITs), GWG Holdings Inc. L Bonds, and private placements.
October 2019. “August 2015 to present client alleging negligence and unsuitable transaction.” The customer sought $500,000 in damages, and the case was settled for $150,000. The complaint took place while he was registered with Cabot Lodge Securities LLC, and it was regarding non-traded REITs.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Cabot Lodge Securities LLC may be liable for investment or other losses suffered by David Arlein’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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