Fraud Alert: Cabot Lodge Securities LLC Financial Advisor Robert Tweed
Posted on Saturday, January 6th, 2018 at 9:38 am
Erez Law is currently investigating Cabot Lodge Securities LLC financial advisor Robert Tweed (CRD# 2339324) regarding fraud charges related to an investment fund, Athenian Fund, L.P. Tweed has been registered with Cabot Lodge Securities LLC in San Marino, California since 2015. Previously, he was registered with:
- Concorde Investment Services, LLC in San Marino, California from 2011 to 2015
- Capwest Securities, Inc. in San Marino, California from April to August 2011
- Mam Securities, LLC in Sherman Oaks, California from 2010 to 2011
- Capwest Securities, Inc. in San Marino, California from 2007 to 2010
- United Securities Alliance, Inc. in San Marino, California from 2005 to 2007
- National Planning Corporation in El Segundo, California from 1999 to 2005
Tweed was terminated from National Planning Corporation in 2005 regarding, “Violations of NASD conduct Rule 2210,” a retired rule that pertained to communication with the public.
In October 2017, the Securities and Exchange Commission (SEC) filed fraud charges against Tweed and his company, Tweed Financial Services, Inc., a California advisory firm, with misleading investors about the profitability of a fund they managed until SEC examiners discovered the fraud. According to the SEC, in 2008 Tweet and his company formed and managed an investment fund, Athenian Fund, L.P., as a “feeder” to invest in an unrelated fund. By 2010, Tweed raised more $1.7 million from 22 investors. Tweed initially invested the money in the quantitative stock trading strategy fund, but later moved the investors’ money into a different fund, the Quantitative Analytics Master Fund, which was operated by a business acquaintance of Tweed’s. In 2010, Tweed learned that 40% of Athenian Fund’s investment in the Quantitative Analytics Master Fund had not been invested in any stock at all, but was instead tied up in a one-year loan to a third party. Tweed asked the fund manager to return all of the money that the Athenian Fund had invested in Quantitative Analytics Master Fund, but Tweed obtained only 40% that had not been loaned to the third party. Tweed then caused the Athenian Fund to invest a portion of that returned capital in a software business run by a friend of Tweed. Neither of these investments were profitable. In 2012, Tweed was informed that the promissory note held by Quantitative Analytics Master Fund was uncollectible, and the funds had been further conveyed to invest in a gold mining venture in Ghana. In 2012, Tweed also learned that the Quantitative Analytics Master Fund manager had been indicted for bank fraud. In 2013, Tweed knew that the software business had filed bankruptcy. Tweed and his company Tweed Financial Services, Inc. did not notify the Athenian Fund’s investors of the change in investment strategy and the losses on those investments. Instead, Tweed and Tweed Financial Services, Inc. continued to send quarterly account statements to the Athenian Fund’s investors falsely claiming flat or positive income and returns on these investments. It is also alleged that Tweed and Tweed Financial Services, Inc. concealed the fact that Athenian Fund assets were held in illiquid, unprofitable investments when it allowed some investors to receive full redemptions based on the inflated value of the Athenian Fund’s assets.
In April 2017, Tweed was a respondent in a FINRA complaint alleging that he obtained more than $1.6 million from his retail customers through a false and misleading private placement memorandum he used to offer and sell interests in a pooled investment fund that he both created and controlled. The complaint alleged that Tweed drafted and circulated the private placement memorandum, which misrepresented and failed to disclose material information to investors, and 23 customers invested in the fund without the benefit of complete and accurate information, (misleading statements and misleading omissions), about the total potential fees and costs associated with the fund. It is alleged that Tweed used misleading information to solicit investors in the fund, and those investors were prevented from vetting the undisclosed person, who was engaging in bank fraud and fraudulent trading in another unrelated pooled investment program at the same time that Tweed was entrusting him with the fund’s assets. According to Tweed’s CRD, “In fact, just over two months after the fund offering ended, the undisclosed person abandoned the computerized quantitative trading strategy described in the PPM, exercising his undisclosed control over the fund’s assets to transfer $650,000 to a third party financier, purportedly to support the importation, refining, and sale of Ghanaian gold dust in the United States. The profit promised from this investment never materialized, the $650,000 has not been repaid, and it may never be recovered by the fund’s investors.”
Tweed has been the subject of 11 customer complaints between 2002 and 2017, two of which were closed without action, according to his CRD report:
February 2017. “Client is alleging misrepresentation and poor performance in relation to investments made in July of 2013.” The customer is seeking $145,000 in damages and the case is currently pending.
April 2016. “Claimant Alleges Violation Of Standards Of Reasonable Basis Suitability And Just And Equitable Principles Of Trade, Fraud, Misleading Statements, Misleading Ommissions Of Material Information, Breach Of Fiduciary Duty, Neglegent Misrepresentation, Negligence, Breach Of Contract, And Breach Of Covenant Of Good Faith And Fair Dealing.” The case is currently pending.
December 2015. “Claimant alleges breach of fiduciary duty, misrepresentations and ommissions,failure to supervise, unfair and deceptive trade practices, violation of state of state and federal securities laws, and elder abuse.” The case was settled for $160,000.
July 2015. “Client is alleging unauthorized trading, misrepresentation and misappropriation of funds in relation to various limited partnership investments occurring between 2010 and 2013.” The case is currently pending.
November 2014. “Misrepresentation, breach of fiduciary duty, breach of disclosure, negligence, in relation to tenant in common interest sold in 2007.” A final decision was reached in the amount of $334,000.
June 2011. “Breach of fiduciary duty, professional negligence of financial advisor, negligent omissions causing injury, negligent misrepresentation of material facts, common count – money had and received, rescission of contract due to fraud or mistake, tort of another claim for attorney’s fees, declaratory relief regarding arbitration agreements, unfair business practices under ca code, fraud in the sale of securities under CA Blue Sky Laws, sale of unregistered securities under CA Blue Sky Laws.” The customer sought $1,800,000 in damages and the case was settled for $17,500.
July 2010. “Unsuitable investments, breach of contract, fraud, breach of fiduciary duty, negligent for the sales of Watersong Apartments and Cabot Turfway Ridge Acquisition in February 2007. Claiments are not clients of capwest securities.” The customer sought $700,000 in damages and the case was settled for $156,250.
June 2009. “Alleges fraudulent misrepresentation, fraudulent concealment / omission, negligent misrepresentation, negligent concealment / omission, negligence, unsuitability, failure to supervise, breach of fiduciary duty, breach of implied covenant of good faith and fair dealing, elder abuse under ca law, violation of state and federal securities laws, violations of finra, NAS and NYSE rules.” The customer sought $1,870,000 in damages and the case was settled for $338,000.
July 2003. “Client claims that he did not receive the variable annuity policy and subsequently wanted to rescind the contract within the free look period.” The case was settled for $10,172.33.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Cabot Lodge Securities LLC may be liable for investment or other losses suffered by Tweed’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.