Dale Edward Wright, Formerly of Cambridge Investment Research, Placed on Probation by Virginia State Corporation Commission

INVESTORS: Former Cambridge Investment Research broker Dale Edward Wright was placed on probation by the Commonwealth of Virginia State Corporation Commission Bureau of Insurance until June 2021.

Dale Edward Wright (CRD#:1142615) was registered as a broker with Cambridge Investment Research from 2011 until 2019. Previously, Wright was registered as a broker with Sanders Morris Harris, Inc., from 2008 until 2011.

Wright has 11 disclosures on his BrokerCheck report. One customer dispute was closed with no action taken.

July 2019 Regulatory Judgment

Status: Final

Initiated By: Commonwealth of Virginia State Corporation Commission Bureau of Insurance

Allegations: The Bureau alleges that the advisor encouraged clients to purchase Life Insurance Policies for the purposes of using the policies as investment tools, violated Code of Virginia sections 38.2502(1) and (7), 38.2-1831 (1)and 14 VAC 5-41-30.

Resolution: Order

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $50,000.00

Sanctions: Restitution

Amount: $16,300.00

Sanctions: Undertaking

Sanctions: Advisor placed on probation with the Bureau through June 30, 2021.

January 2019 Customer Dispute

Status: Settled

Allegations: Client alleges violation of the Virginia Securities Act, fraud, negligent representation, breach of fiduciary duty, and unsuitability.

Damage Amount Requested: $112,164.00

Settlement Amount: $40,000.00

Broker Comment: The RR denies any wrongdoing. RR asserts the Client never used the allegedly unsuitable strategy, as indicated by extensive documentation. RR asserts the Client made additional factually incorrect statements in the complaint.

September 2018 Customer Dispute

Status: Settled

Allegations: Clients allege they have incurred damages resulting from unsuitable investment strategies marketed to them.

Damage Amount Requested: $45,000.00

Settlement Amount: $27,500.00

Broker Comment: The RR denies any wrongdoing. The RR reviewed the suitable investment strategy with the Client on numerous occasions over a 17-year advisory relationship. RR asserts the Client chose to deviate from the strategy against the advice of the RR. RR asserts all recommendations were suitable for the Client prior to the Client deviating from the strategy.

June 2018 Customer Dispute

Status: Settled

Allegations: Claimants allege RR recommended a ruinous investment strategy where they leveraged their home equity to purchase whole life insurance policies, then advised to borrow from the insurance policies and invest the borrowed funds in an investment account.

Damage Amount Requested: $100,000.00

Settlement Amount: $65,000.00

Broker Comment: RR denies any wrongdoing. The RR states that there are clear misstatements of facts in the Client’s claim. RR clearly explained the strategy to the clients, which they implemented, and were following, until the clients elected to deviate from the strategy, against the recommendations of the RR, which caused their strategy to fail.

January 2018 Customer Dispute

Status: Settled

Allegations: Claimants allege advisor recommended them to purchase life insurance policies and borrow against the policies. In addition to the life insurance, Claimants allege the advisor recommended they refinance their home and invest additional funds from that transaction. Claimants allege advisor made unsuitable recommendations and misrepresentations with respect to the purchase of life insurance to provide funds for investment in other securities.

Damage Amount Requested: $500,000.00

Settlement Amount: $190,000.00

Broker Comment: *Section 17-23 was filled out in error. RR was subject of the civil litigation not a named party.* The RR denies any wrongdoing. RR states that he clearly explained the strategy to the clients on numerous occasions over a 17 year advisor/client relationship. The clients understood it and fully implemented it over the years until deciding to deviate from the strategy without consulting the RR.

January 2018 Customer Dispute

Status: Settled

Allegations: Claimants allege advisor recommended them to purchase life insurance policies and borrow against the policies. In addition to the life insurance, Claimants allege the advisor recommended they refinance their home and invest additional funds from that transaction. Claimants allege advisor made unsuitable recommendations and misrepresentations with respect to the purchase of life insurance to provide funds for investment in other securities.

Damage Amount Requested: $500,000.00

Settlement Amount: $190,000.00

Broker Comment: The RR denies any wrongdoing. RR states that he clearly explained the strategy to the clients on numerous occasions over a 17 year advisor/client relationship. The clients understood it and fully implemented it over the years until deciding to deviate from the strategy without consulting the RR.

March 2017 Customer Dispute

Status: Settled

Allegations: Client alleges violation of Virginia Securities Act, breach of fiduciary duty, negligence, negligent supervision and breach of contract relating to life insurance policies.

Damage Amount Requested: $130,000.00

Settlement Amount: $70,000.00

Broker Comment: The RR denies any wrongdoing. He clearly explained the strategy to the clients on numerous occasions. The clients understood it fully but then chose to deviate from it. The RR maintains there are clear misstatements of fact in the complaint. The RR was not a named party to the arbitration and did not contribute to the settlement.

June 2015 Customer Dispute

Status: Settled

Allegations: Clients allege that they were damaged by sale of life insurance policies and the subsequent advice to borrow against the cash value and invest in the stock market.

Damage Amount Requested: $70,000.00

Settlement Amount: $50,000.00

Broker Comment: The RR denies any wrongdoing. RR states he clearly explained the strategy to the clients on numerous occasions. The clients understood it fully but then chose to deviate from it. The RR was not a named party to the arbitration. The RR was not consulted about the settlement, nor did he participate in or directly contribute to it.

June 2015 Customer Dispute

Status: Settled

Allegations: Client alleges that RR misrepresented a life insurance policy and that RR sold her a policy that was unsuitable.

Settlement Amount: $12,700.00

Broker Comment: The RR maintains that the complaint is without merit and that substantive statements in the complaint are inaccurate when compared to the extensive documentation of the adviser’s meetings, emails, and telephone conversations with the client over the 7 year adviser/client relationship. The RR provided a detailed, 10-page response to the Virginia Bureau of Insurance documenting the inaccuracies in the complaint.

April 2005 Customer Dispute

Status: Settled

Allegations: Client alleges unsuitability and use of home equity to purchase securities.

Damage Amount Requested: 600,000.00

Settlement Amount: $125,000.00

Broker Comment: I was dismissed from the proceeding after settlement between NPC and the claimant. However, I am not contributing to the settlement and I continue to deny any wrongdoing in regard to the allegations. I believe the claim is without merit. I did not oppose the resolution and go to arbitration because I had concern over whether my insurance carrier would cover me on an individual basis after NPC and the other respondents settled the matter. Settlement avoided the time and expense associated with me proceeding with the arbitration individually.

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