Capital Investment Group, Inc. (“Capital Investment Group“) (CRD#14752) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself.
At the Law Offices of Robert Wayne Pearce, we have investigated Capital Investment Group’s regulatory and customer complaints and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you lost money due to misconduct at Capital Investment Group, you have legal options to recover your investment losses. The firm’s documented history of supervisory failures, regulatory violations, and inadequate oversight means many investors have valid claims for compensation. You can pursue these claims through FINRA arbitration, even if you signed an arbitration agreement when opening your account.
Don’t wait—time limits apply to filing investment fraud claims. Securities arbitration claims typically must be filed within six years of the alleged misconduct, but waiting can jeopardize your ability to recover losses. The sooner you act, the stronger your case becomes because evidence remains fresh and witnesses are available.
Can I Sue Capital Investment Group?
Yes, you can sue Capital Investment Group if you have suffered investment losses due to the misconduct, negligence, or fraudulent actions of the firm or its brokers. However, most Capital Investment Group customer agreements require disputes to be resolved through FINRA arbitration instead of filing a lawsuit in civil court. This means that while you may not be able to bring a traditional court case, you can pursue legal action through the arbitration process, which is the standard forum for investor claims against brokerage firms.
Attorney Robert Wayne Pearce has successfully represented investors nationwide in FINRA arbitration claims against financial firms like Capital Investment Group. His deep knowledge of securities law and arbitration procedures can help maximize your chances of recovering losses through a claim against Capital Investment Group.
How to Sue Capital Investment Group for Investment Losses
What Can I Do If I Lost Money at Capital Investment Group?
If you suffered investment losses at Capital Investment Group, FINRA arbitration provides a direct path to recover your money. This process allows you to file a claim against the brokerage firm without going to court. FINRA arbitration works because even though you may have signed an arbitration agreement, that agreement also protects your right to file claims for fraud, negligence, and breach of fiduciary duty.
Capital Investment Group’s documented regulatory violations demonstrate systemic problems that often harm investors. The firm has been fined $50,000 for failing to disclose material information about offerings, resulting in $860,000 in sales without proper disclosure. They’ve also faced censures for inadequate supervision of outside business activities and failure to transmit orders to required audit systems. These violations created an environment where investor losses were more likely to occur because proper safeguards weren’t in place.
The arbitration process typically takes 12-16 months from filing to hearing. During this time, your attorney will gather evidence, depose witnesses, and build your case. You’ll present your claim before a panel of arbitrators who will decide whether Capital Investment Group must compensate you for losses caused by misconduct or negligence. Most importantly, you don’t pay attorney fees unless you recover money—securities arbitration attorneys typically work on contingency.
Who Can Help Me Sue Capital Investment Group?
Recovering investment losses requires an attorney who specializes in securities law and FINRA arbitration. The Law Offices of Robert Wayne Pearce has handled numerous cases involving firms with supervisory failures similar to Capital Investment Group’s documented violations. The firm understands how independent broker-dealers operate and knows how to connect regulatory violations to specific investor harm.
When you work with a securities arbitration attorney, they will review your account statements, identify which specific violations or misconduct caused your losses, and determine whether you have a viable claim. Your case becomes stronger when you can tie your losses to Capital Investment Group’s established pattern of regulatory failures—such as inadequate supervision, failure to disclose material facts, or allowing representatives to engage in unsuitable investment recommendations.
What is Capital Investment Group?
Capital Investment Group (CRD#14752) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Capital Investment Group is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Why Does Capital Investment Group Have So Many Bad Reviews and Customer Complaints?
Capital Investment Group’s compliance problems stem from structural flaws common to independent broker-dealers. The firm operates a franchise-style business model where registered representatives work as independent contractors rather than employees. This creates supervision gaps because the firm cannot directly control day-to-day operations the way traditional brokerage firms do.
The supervisory structure relies on Offices of Supervisory Jurisdiction (OSJs)—other independent contractors who monitor representatives from remote locations. These OSJ managers often run their own businesses and cannot provide full-time supervision. They lack the resources to review new accounts immediately, monitor securities transactions daily, or catch problems like forged signatures or misrepresented client information before investors get harmed.
Without on-site managers and compliance personnel, there’s typically only one compliance audit visit per year at many branch offices. This means sales representatives can make unsuitable investment recommendations, use misleading sales materials, or engage in other misconduct for months before anyone catches it. Investors transfer their accounts to these independent firms unaware they’re getting less oversight than traditional brokerages provide.
The North American Securities Administrators Association (NASAA) has documented that sales abuse and investor losses occur more frequently at these independent firms than at traditional brokerages with on-site supervision. Capital Investment Group’s pattern of regulatory violations reflects these inherent structural problems rather than isolated incidents.
Examples of Regulatory Problems and Complaints for Capital Investment Group
Capital Investment Group’s rapid growth has not been without consequences. There have been approximately 7 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations.
In addition, there have been customer complaints filed against Capital Investment Group for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Capital Investment Group is a repeat offender: there are over 7 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Complaints and Regulatory Problems Capital Investment Group Has Faced Over the Years*
Capital Investment Group has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Censures and Fines Capital Investment Group for Failure to Disclose Material Information about Offerings
Brief Overview: Without admitting or denying the findings, Capital Investment Group consented to the sanctions and to the entry of FINRA findings that it negligently failed to tell investors material information about two offerings. Specifically, FINRA stated that while the firm received emails from the asset management firm notifying it of delays and the asset management firm’s intention to complete a forensic audit, the firm sold eight limited partnership interests in one of the offerings and one limited partnership interest in the other after that announcement.
The value of those sales were $860,000, and the firm received $68,800 in commissions. With regard to these sales, firm representatives did not inform the customers that the offerings had not timely filed their audited financial statements with the SEC. FINRA said the delay in filing audited financial statements and the reasons for it was material information that should have been disclosed. As a result, the firm was censured and fined $50,000.
State of Wisconsin Office of the Commissioner of Insurance Revokes Capital Investment Group’s Insurance License
Brief Overview: The Office of the Wisconsin Commissioner of Insurance found that Capital Investment Group provided incorrect, misleading, or materially untrue information, as well as being unresponsive by failing to timely complete an application for licensing or failing to provide information or required documentation, on its application for licensure.
Capital Investment Group said that the responses to the agent licensing section were completed by an administrative staff member of the firm, who misinterpreted the request and believed that the information provided was complete.
The firm further said soon after the misinterpretation and resulting incorrect response was realized, the firm’s chief compliance officer contacted the agent licensing section on numerous occasions to provide the correct information. Correspondence was sent to both the commissioner of insurance and agent licensing section, and the firm hopes to get the situation rectified and the firm licensed in Wisconsin.
Massachusetts Securities Division Censures and Fines Capital Investment Group for Failure to Supervise Representative’s Outside Business Activity
Brief Overview: The Massachusetts Securities Division initiated an investigation into Capital Investment Group alleging the firm failed to reasonably supervise the outside business activities of an agent, causing harm to Massachusetts Investors. The Massachusetts Securities Division took the position that the settlement was inadequate and ordered payment of a sum beyond what the investor had already agreed to as well as an administrative fee. The Division and the firm reached a mediated settlement with investor and received a written release, and the firm was censured and fined $50,000.
FINRA Censures and Fines Capital Investment Group for Failure to Transmit Orders to Audit System
Brief Overview: Without admitting or denying the findings, the Capital Investment Group consented to the described sanctions and to the entry of FINRA findings that the firm failed to transmit all its reportable order events to the order audit trail system on numerous business days that it was required to transmit.
According to FINRA, the firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with applicable securities laws, regulations, and NASD rules concerning reporting requirements. The firm consented to sanctions and to the entry of finding, was fined, and required to revise its written supervisory procedures regarding reporting requirements within 30 business days.
South Dakota Revokes Capital Investment Group’s Registration for Failure to Properly Withdraw Its Registration
Brief Overview: The State of South Dakota initiated an investigation into Capital Investment Group that revealed that although the firm was approved by South Dakota to do business in the state, it did not withdraw its registration after the firm no longer needed the registration in South Dakota. The State of South Dakota requires at least one agent to be registered at all times in order to keep the registration of a broker-dealer effective. As a result, South Dakota revoked the registration of the firm.
*Above are only some of the regulatory disciplinary actions filed against Capital Investment Group by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 2 BrokerCheck disclosures.
How to File an Official Complaint Against Capital Investment Group Advisor or one of its brokers with FINRA
If you are asking how to file an official complaint against Capital Investment Group, Inc. (CRD #14752) or one of its brokers with FINRA, it’s important to know that the firm has a history of regulatory violations, supervisory failures, and customer complaints. FINRA and state regulators have sanctioned Capital Investment Group for issues such as failure to disclose material information in offerings, inadequate supervision of outside business activities, and improper reporting practices. The firm has faced multiple censures, fines, and even license revocations in various states—highlighting systemic compliance problems.
At the Law Offices of Robert Wayne Pearce, P.A., we have experience helping investors file FINRA complaints and arbitration claims against firms like Capital Investment Group. These cases often involve fraud, negligence, or breach of fiduciary duty, and without skilled representation, many investors see their claims denied.
If you suffered financial losses due to misconduct by Capital Investment Group or one of its financial advisors, our securities attorneys can guide you through the FINRA arbitration process, protect your rights, and fight to recover your investment losses.
These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Capital Investment Group without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Capital Investment Group
The Law Offices of Robert Wayne Pearce assists investors through every stage of the FINRA arbitration process. We begin with a free case evaluation to determine whether your losses resulted from misconduct or regulatory violations like those Capital Investment Group has demonstrated. Our firm investigates your account activity, identifies which specific violations or breaches of duty occurred, and builds a comprehensive claim for arbitration.
During arbitration, we present evidence of how Capital Investment Group’s supervisory failures or representative misconduct directly caused your financial harm. We handle all procedural requirements, discovery, and hearing preparation so you can focus on your recovery. Attorney Robert Wayne Pearce offers free consultations to investors nationwide who suffered losses at firms with regulatory compliance issues.
Don’t navigate the claims process alone. Contact our firm to discuss whether you have a viable claim and how we can help you pursue compensation for investment losses caused by Capital Investment Group’s documented violations.
Consult With An Attorney Who Recovers Investment Losses Caused By Capital Investment Group Today
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Capital Investment Group cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Rate this Post
Loading...