Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, represents investors who have suffered losses due to misconduct, unsuitable recommendations, or negligence at brokerage firms Nationwide-investor-losses/”>Nationwide-investor-losses/”>Nationwide. Our 95+ years of combined experience and 98% success rate give us the insight to identify violations and build strong claims for recovery.
About Cape Securities
Cape Securities is a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA). Headquartered in McDonough, Georgia, the firm served individual and institutional investors across the United States through registered representatives in multiple states. In 2026, Cape Securities filed a Form BDW requesting termination of its FINRA registration.
FINRA enforcement action
On May 15, 2026, FINRA issued a Letter of Acceptance, Waiver, and Consent (AWC) that censured Cape Securities and ordered $145,072.62 in partial restitution to affected investors. The firm signed the AWC without admitting or denying the findings.
GWG L bond violations
Between July 2020 and April 2021, two Cape Securities representatives recommended that six retail customers purchase $460,000 in GWG L bonds. Every customer had a moderate risk tolerance. Five of the six were seniors. The concentration of alternative investments reached up to 43 percent of customers’ liquid net worth.
Supervisors took no steps to evaluate whether the recommendations were in the customers’ best interests. The firm’s written supervisory procedures required review of an alternative products worksheet but provided no guidance for assessing best interest or customer profile consistency.
Nontraditional ETF violations
From July 2021 to March 2023, the same pattern appeared with nontraditional exchange-traded products (NT-ETPs). One representative recommended approximately $45,000 in triple-leveraged NT-ETPs to four retail customers ranging in age from 57 to 92. The holding periods ran from 253 to 693 days — far beyond the single-session design — and the customers incurred $15,072.62 in realized losses.
Rule 8210 response failures
In addition to the product-line failures, FINRA found that from May 2023 through March 2025, Cape Securities failed to respond timely to eight Rule 8210 requests for documents and information. The firm missed multiple deadlines without requesting extensions and came into compliance only one day before a FINRA Notice of Suspension would have taken effect.
Individual sanctions in the same enforcement thread
The firm-level action resolved a thread that had already produced individual sanctions:
| Date | Individual | Sanction | Violation |
|---|---|---|---|
| March 2026 | Lester Joel Hochler (former CCO) | Suspended and fined | Failed to exercise reasonable diligence in overseeing GWG L bond recommendations |
| April 2026 | William S. Morris (registered representative) | Disciplined | Unsuitable GWG L bond sales to five retail customers (four seniors) Feb–Apr 2021 |
Common investor complaints at Cape Securities
Investors who worked with Cape Securities have reported concerns including unsuitable investment recommendations, supervisory failures, and other misconduct. Specific allegations have included:
- Unsuitable investment recommendations
- Failure to supervise registered representatives
- Overconcentration in high-risk or illiquid products
- Unauthorized transactions
- Misrepresentation of investment risks
- Churning or excessive trading
- Breach of fiduciary duty
FINRA BrokerCheck disclosures
All registered broker-dealers maintain a public BrokerCheck profile through FINRA. Investors can review Cape Securities’s disclosure history, including customer complaints, arbitrations, regulatory actions, and employment terminations, at FINRA BrokerCheck.
How our firm helps investors
Investment Fraud Lawyers have been involved in over $520 million in securities cases. We work on a contingency basis — no recovery, no fee. Our process:
- Free case evaluation. We review your account statements, communications, and trading history at no charge.
- Claim preparation. We draft a Statement of Claim identifying specific violations and damages.
- Discovery. We obtain internal firm records, communications, and compliance documents.
- Resolution. We negotiate settlement or present your case at a FINRA arbitration hearing.
Frequently asked questions
Can I sue Cape Securities directly?
Most brokerage agreements require FINRA arbitration. You typically cannot sue Cape Securities in court. Our firm handles FINRA arbitration claims nationwide.
How long does FINRA arbitration take?
Most cases resolve within 12 to 18 months. Many settle before a hearing.
What types of losses can be recovered?
Damages may include principal losses, consequential losses, lost opportunity costs, and in egregious cases, punitive damages.
How do I know if my losses were caused by misconduct?
Red flags include account concentration, unauthorized trades, excessive fees, and investments that do not match your stated risk tolerance. We review your statements at no charge.
What does “no recovery, no fee” mean?
Investment Fraud Lawyers works on a contingency basis. We only collect a fee if we recover money for you. There are no upfront costs or hourly charges.
Contact us for a free case review
If you lost money at Cape Securities, contact Investment Fraud Lawyers today.
Call 1-888-885-7162 or email case@htattorneys.com
Our offices: Juno Beach, Florida | Phoenix, Arizona | New York, New York | Cary, North Carolina | Houston, Texas
Disclaimer: The information on this page is provided for educational and investigational purposes. It does not constitute legal advice. Past results do not guarantee future outcomes. Each case is evaluated on its own facts and circumstances.