Broker Complaints: Cape Securities, Inc. (CRD# 7072)

Fitapelli Kurta is investigating complaints against broker-dealer firm, Cape Securities, Inc.

Cape Securities, Inc. is a broker-dealer firm formed in North Carolina in 1976. Cape Securities’ main office is located at 1600 Pennsylvania Ave., McDonough, Georgia 30253. Cape Securities is registered with the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Cape Securities took over Seacoast Investor Services Inc. in 2011.

Cape Securities and their brokers have a history of FINRA violations and customer complaints. Notably, on August 8, 2013 Cape Fear Securities broker, Paul Elvidge Jr. was indicted for 36 counts of wire fraud and six counts of aggravated identity theft. The indictment stemmed from an investor complaint filed against Paul Elvidge Jr. back in 2012. Cape Securities broker, Paul Elvidge Jr. was permanently barred from the financial industry in January 2013 and ordered to pay $620,177 in restitution to his aggrieved customer.

On September 20, 2013 Cape Securities broker, Michael A. Lovett entered into a letter of Acceptance, Waiver and Consent (AWC) for failing to provide a timely response to an SEC request for information. Michael A. Lovett was fined $4,000. However, this is not the first time Michael A. Lovett had entered into these AWC’s. In 2007 Michael A. Lovett signed another AWC for failing to establish appropriate supervisory procedures over his representatives. At that time, Michael A. Lovett was a registered broker at Pacific West Securities, which is no longer licensed with FINRA.

On April 4, 2011 Cape Securities broker, Gaynell A. Palmisano received an investor complaint alleging Gaynell A. Palmisano recommended his customer switch mutual funds. The switch, however, proved only beneficial to Gaynell A. Palmisano, as it nearly tripled the annual fees and caused the investor to lose money. Gaynell A. Palmisano also received more fees as a result of this switch. That claim settled before arbitration for almost $25,000.

If you or someone you lnow has lost money investing with Cape Securities, Inc., Gaynell A. Palmisano, Michael A. Lovett, Paul Elvidge Jr., or any other Cape Securities broker, you may be entitled to compensation for your losses. Contact the attorneys at Fitapelli Kurta today to discuss the merits of your case for free. All cases are taken on a contingency fee basis and our consultations are always free. Time to file a claim is limited, however, so do not wait. Call now.