Formed in 1990 by Mick Owens, CFD Investments (“CFD”) is one of the largest independent broker-dealers, assisting customers with stocks and bonds, financial planning, retirement planning, ETFs, annuities, mutual funds, investment management, and alternative investments. CFD is currently owned by Christopher M. Rockey and headquartered in Kokomo, Indiana with smaller branch offices through the country. The firm serves all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at CFD Investments
CFD Investments is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors.
In 2017, FINRA brought an action against CFD alleging that between October 2012 and July 2014 the firm failed to establish procedures to adequately supervise the sale of inverse and leveraged Exchange-Traded Funds (ETFs) despite selling $2M in approximately 150 transactions. Additionally, though these vehicles were intended to be traded intra-day, the average holding period for them was 300 days. CFD settled this action paying a $30,000 fine.
In January 2019, FINRA fined CFD $125,000 for failure to supervise variable annuity recommendations and exchanges made by its brokers between July 2014 and July 2016. Specifically, FINRA alleged that CFD lacked the proper supervisory systems to monitor the rates of exchanges, and therefore failed to supervise the sale of L-share (more expensive and more liquidity) variable annuities versus B-share (less expensive and less liquidity) annuities. This was especially egregious considering that almost 25 percent of CFD’s variable annuity transactions were exchanges.
In August 2020, FINRA initiated an action against CFD, alleging that the firm failed to perform adequate due diligence concerning an oil and gas private placement investment. As a result, CFD’s FINRA membership was suspended for 45 days in any and all private placement activities, and the firm was ordered to pay $750,000 in restitution to its customers.
If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages. Former Dallas, Texas CFD broker, Dana Bruce Vietor has been the subject of numerous actions for misconduct. In June 2019, a CFD customer initiated a variable annuities and direct-investment-related arbitration claim against Vietor, for breach of contract, breach of fiduciary duty, misrepresentations and omissions, negligence, suitability, and fraud. Vietor settled for $32,600.
In March 2021, Vietor settled a dispute with a customer who alleged that Vietor engaged in private securities transactions away from CFD. The client also alleged that the investments were promissory notes issued by a company that Vietor controlled. Vietor settled for $900,000 and has been barred from acting as a broker or associating with a broker-dealer firm.
In November 2022, a FINRA arbitration panel required Vietor to pay $5.7M+ for breach of fiduciary duty, fraud, misrepresentation, omission of facts, suitability, violation of blue sky laws, breach of contract, failure to supervise, and negligence concerning private equities and other types of securities.
You May Have a Claim! Contact Our Firm Now!
As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests. Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA).
If you believe that you have been the victim of investment fraud or have been recommended unsuitable investments, you may have options. Call Meyer Wilson today!