Last Updated: May 2024 (Boca Raton, FL)
David Arlein Investigation Summary
Here’s what you need to know about Boca Raton, FL, stockbroker David Arlein:
- Name: Mr. David Leslie Arlein
- Current Employer: Previously registered broker
- DBA: The Financial Store
- Previous Firms: Cabot Lodge Securities, FINTEGRA LLC, Empire Financial Group
- Function: Stock Broker/ Financial Advisor
- Aliases: David Arlein
- Primary Location: Boca Raton, FL
- CRD 7145
- Can David Arlein be sued in FINRA arbitration: Yes
- Sanctioned by Securities Regulators: Yes
- Highest Settlement or Award: $200,000
- Three Pending Customer Disputes Seek Damages Totaling $900,000
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With David Arlein As Your Stockbroker?
David Arlein was first licensed as a broker in 1968. Since that time he has been registered with 18 FINRA broker dealers. He is not currently registered with any FINRA broker dealer at this time.
His CRD indicates that he has been sanctioned by securities regulators 3 times and has 20 prior resolved customer disputes.
There are currently 3 customer disputes pending, all brought by customers of his most recent firm, Cabot Lodge Securities. Two of the claims involve GWG L Bonds, a private placement. The third pending claim alleges violation of Regulation Best Interest , breach of fiduciary duty and negligence in connection with an investment in a private placement. Cumulatively the pending cases seek damages of $900,000.
Fifteen customer disputes have been resolved either by settlement or an award from a FINRA arbitration panel. Recent settlements include:
- 2021-$200,000 paid to a Cabot Lodge Securities customer to resolve claims related to non traded REITs, BDCs, Unit Invesment Trusts, Private Placements and GWG L Bonds.
- 2020-$150,000 to another Cabot Lodge customer who alleged an alternative investment was unsuitable.
[LEARN MORE]: See this for more information on REITs and Other Alternative Investments
Allegations of Broker Misconduct Against David Arlein
Customers of David Arlein have alleged the following wrongdoing in connection with the handling of customer accounts:
- Unsuitable Investment Recommendations
- Violation of Regulation Best Interest
- Breach of Fiduciary Duty
- Negligence
- Misrepresentation
- Common Law Fraud
- Unsuitable Trading Strategy
[LEARN MORE]: Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.
[LEARN MORE]: FINRA Rule 2111- suitability -Regulation Best Interest
Private Placements under Reg D: What is a Private Placement? According to the U.S. Securities and Exchange Commission (SEC):
“Under the federal securities laws, a company may not offer or sell securities unless the offering has been registered with the SEC or an exemption from registration is available. Offerings exempt from the SEC’s registration requirements pursuant to Securities Act Section 4(a)(2) or its safe harbor under Regulation D of the Securities Act are often referred to as private placements.”
The SEC warns that unregistered offerings may be utilized to conduct investment scams and that investors should have the ability to weather a total loss in these illiquid investments. See this SEC Investor Alert about red flags to watch out for in unregistered offerings.
Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Recover Your Investment Losses Now With Rex Securities Law
[LEARN MORE]:
See this for information on our other investigations of Cabot Lodge Securities brokers
How to recover losses on GWG Bonds-UPDATE
Overwhelmed by GWG Losses Some Broker Dealers Are Shutting Down
If you have suffered investment losses in an account handled by David Arlein, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
