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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, its 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 believe you have a claim against Capital Investment Group, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. 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.

Can I Sue Capital Investment Group?

If you’ve lost money caused by Capital Investment Group and/or its employees’ misconduct then the answer is, YES, you can sue Capital Investment Group, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Capital Investment Group in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Capital Investment Group is to call Attorney Pearce at our office at 800-732-2889.

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Robert Pearce

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.

Capital Investment Group Has Many Different Regulatory Problems 

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 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.

Capital Investment Group Customer Complaints

There have been scores of customer complaints filed against Capital Investment Group stockbrokers and investment advisors over the years. We have launched many investigations of current and former Capital Investment Group advisors:

If you have lost money investing with any of these Capital Investment Group advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.

Why Does Capital Investment Group Have So Many Regulatory Problems And Customer Complaints?

Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.

The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers. 

Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.

These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.

Did Capital Investment Group Advisor Misconduct Cause You Investment Losses?

When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Capital Investment Group is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. 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?

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Robert Pearce

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 40 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.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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