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Eric Afakan: Why Did Cambridge Investment Research Broker Resign?
Former Cambridge Investment Research broker Eric Afakan (CRD# 2563297) recently resigned from the firm in connection to alleged violations of firm rules. Financial Industry Regulatory Authority and Securities and Exchange Commission records show that he remains an investment advisor with International Assets Investment Management. He is also a managing member of Signature Financial Group.
Why Did Afakan Resign?
According to a disclosure on his BrokerCheck report, Mr. Afakan was “permitted to resign” from Cambridge Investment Research in September 2022. The disclosure states that his resignation related to allegations that he violated firm rules “regarding covering client losses.”
FINRA Forbids Brokers from Improperly Sharing in Losses
Generally speaking, brokers like Mr. Afakan are prohibited from entering into arrangements in which they share in client profits or losses. Such conduct is specifically forbidden by FINRA Rule 2150, which states that “No member or person associated with a member shall guarantee a customer against loss in connection with any securities transaction or in any securities account of such customer.” There are certain instances outlined by that rule in which brokers may share in losses, though these generally require the broker to obtain prior written authorization from their employer. A broker who shares in client losses without receiving their firm’s approval may be found to have violated Rule 2150.
Suitability Complaint Reaches 5-Figure Settlement
Mr. Afakan’s BrokerCheck report discloses one investor complaint against him. Filed in 2015, the complaint alleged that as a representative of Cambridge Investment Research, he recommended unsuitable investments that resulted in losses. In 2016 the complaint reached a settlement of $40,000.
Mr. Afakan Is Currently Based in Paramus, New Jersey
According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Eric Afakan has spent five years 27 years in he securities industry. Based in Paramus, New Jersey, he has been registered as an investment advisor with International Assets Investment Management since October 2022. His registration history includes Cambridge Investment Research, Commonwealth Financial Network, and Dreyfus Service Corporation. Licensed as an investment advisor in New Jersey, he is not currently registered as a broker. (Information current as of November 17, 2022.)
Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.