ROBERT CAVANAGH Sell You Bad Investments?

Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) reports disconcerting allegations of sales practice violations by Robert Cavanagh (“Bob Holt”) (CRD#: 1494481, Syosset, New York) – a David Lerner Associates registered representative since 1990. Notably, since April 2016, at least three investors brought disputes suggesting that Cavanagh sold unsuitable or misrepresented investments. A brief summary of those claims follows.

David Lerner Client Indicates That Robert Cavanagh Sold Bad Bond Funds

Evidently, a client of David Lerner Associates brought FINRA Arbitration #: 18-02367 on July 9, 2018. First of all, the client alleged that Robert Cavanagh sold unnecessary and unsuitable municipal debt investments including a Puerto Rico Bond Fund and Rochester Bond Fund. Secondly, Cavanagh allegedly misrepresented information about the investments. Thirdly, the client argued that Cavanagh negligently and deceptively traded the client’s account. On August 14, 2019, David Lerner opted to settle the client’s claim by paying the client $38,500.

Client Indicates Cavanagh Misrepresented Investments

Evidently, a client of David Lerner Associates brought FINRA Arbitration #: 17-01673 on October 19, 2018. Namely, the client alleged that Robert Cavanagh falsified information, or failed to make certain disclosures, regarding municipal debt investments. Supposedly, Cavanagh’s alleged misrepresentations and omissions led the client to purchase investments that the client would not have otherwise purchased. Not only that, but the client contended that Cavanagh made inappropriate sales of municipal debt investments. On October 19, 2018, David Lerner agreed to pay the client $112,000 to settle the matter.

Client Prevails In Arbitration Claim Indicating Robert Cavanagh Breached Fiduciary Duty

Next, two clients of David Lerner contested Robert Cavanagh’s sales practices by bringing FINRA Arbitration #: 16-01059. Supposedly, just like with other disputes, these clients alleged Cavanagh made unsuitable trades and misrepresented Puerto Rico bonds. Supposedly, Cavanagh negligently traded Puerto Rico bonds which contained risks that exceeded the client’s risk tolerance. Also, the client contended that Cavanagh failed to comply with his fiduciary responsibility to the client and did not honor an investment agreement. Also, David Lerner Associates supposedly failed to supervise Cavanagh’s recommendations. Subsequently, FINRA Arbitrators issued an Award on October 13, 2017 which states that Cavanagh and David Lerner Associates are jointly responsible for paying the client compensatory damages equal to $205,497.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses by investing with David Lerner Associates securities broker Robert Cavanaugh? 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 law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.