JOHN PRONOVOST Misrepresent Your Investments?

Soreide Law Group is looking into possible investment-loss related disputes on behalf of clients who invested with Cambridge Investment Research, Inc. securities broker John Pronovost (CRD#: 1990612, Watertown, CT). As the Financial Industry Regulatory Authority (“FINRA”) reports on BrokerCheck, Pronovost, who has been registered through the firm since February 29, 2008, disclosed at least 10 disputes from investors between March 2018 and April 2019 concerning Pronovost’s alleged sales practice violations including Pronovost’s misrepresentations and unsuitable investment sales. Here’s more about the disputes which involve Pronovost:

April 4, 2019 Complaint Alleging John Pronovost Misrepresented Mutual Fund Sale

The most recent complaint concerns a Cambridge Investment Research, Inc. client who voiced a complaint about John Pronovost’s sales practices. Specifically, the client alleged that Pronovost misrepresented information or made untruthful statements about the client’s mutual fund trades. Also, Pronovost purportedly sold mutual funds that were inappropriate because of the client’s investment circumstances. Because of this, the client asked for $30,982 in compensation for the alleged harm. However, Cambridge denied the client’s claim.

December 11, 2018 Arbitration Claim Involving Suitability Of Pronovost’s Mutual Funds


FINRA Reports that a Cambridge Investment Research, Inc. client brought Arbitration #: 18-04179. Mainly, the client alleged that John Pronovost sold unsuitable LJM mutual funds. As an aside, LJM Preservation and Growth Fund, managed by Anthony Caine and Anish Parvataneni on behalf of LJM Partners, failed in 2018. It lost considerable value from the rise of the Cboe Volatility Index (VIX), which caused LJM to have to liquidate this fund in March 2018 and cease operations. Pronovost seemingly sold the client one of LJM’s  funds which caused the client significant losses. Evidently, the client wants $75,000 in compensation for Pronovost’s alleged bad mutual fund sales.

July 27, 2018 Complaint Concerning John Pronovost’s Problematic Mutual Fund Sales


A Cambridge Investment Research, Inc. client complained about John Pronovost’s activities on July 27, 2018. Primarily, the client claimed that when Pronovost was the client’s advisor, Pronovost sold unreasonable mutual funds. Supposedly, those investments did not match the client’s investment goals, risk tolerance or other investment related circumstances. As a result, Cambridge Investment Research, Inc. opted to settle the client’s dispute by paying the client $250,000.

March 27, 2018 Arbitration Alleging Pronovost Breached Fiduciary Duty In LJM Preservation And Growth Fund


Most importantly, there is a Cambridge Investment Research, Inc. client who filed FINRA Arbitration #: 18-01327 about John Pronovost. In the Statement of Claim, the client alleged breach of fiduciary duty, unsuitability and misrepresentation.  Apparently, the client brought the claim against both Cambridge Investment Research and Pronovost concerning LJM Preservation and Growth Fund. Notably, this is another client who complained about Pronovost selling bad LJM investments causing investor losses. Allegedly, Pronovost did not make accurate or straight forward statements about the investments. Because of this, the clients potentially purchased the LJM Fund when they otherwise wouldn’t have. Eventually, the FINRA Arbitrator decided that Pronovost and Cambridge Investment Research were culpable. Accordingly, on September 26, 2018, the Arbitrator entered an Award for $41,270.44 comprised of compensatory damages.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses by investing with John Pronovost? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.