Attorney General Kathy Jennings secured a settlement worth more than $1 million with Cambridge Investment Research Inc. and Cambridge Investment Research Advisors, Inc., ending an investigation into Cambridge’s management of, and communications about, Cambridge’s termination of a formerly affiliated financial professional – the “former adviser” – and the subsequent transition of his clients to another financial professional at Cambridge. 

“My office will not stand idly by when investment advisers fail to enforce basic safeguards and put the financial welfare of Delawareans at risk,” said AG Jennings. “This settlement reflects our commitment to holding these firms accountable for their actions and ensuring that Delaware investors are protected from improper unregistered activity.” 

The Director of the Investor Protection Unit—the arm of the Delaware Department of Justice that regulates the registration and conduct of securities firms and professionals in the state—entered into a consent order with Cambridge on Oct. 9, 2026. 

In the consent order, the Director found that Cambridge failed to maintain supervisory systems that would have prevented the former adviser from continuing to assist clients using Cambridge’s platforms and personnel for up to a year after his departure. The Director also found supervisory lapses with respect to the transition of certain clients to another professional at the Firm, which left some accounts unmanaged for nearly a year despite continued advisory fee payments. The Director further found that Cambridge failed to sufficiently notify clients that the former adviser had been terminated from the advisory side of the firm. 

Cambridge consented to the entry of the order without admitting or denying the Director’s findings. To view a full list of the DOJ’s Administrative and Director Orders, visit https://attorneygeneral.delaware.gov/fraud/orders/. 

Pursuant to the settlement, Cambridge will pay $950,000 in penalties, $50,000 in costs, and $52,465 in restitution to clients whose advisory accounts were not properly monitored after the former adviser’s departure. 

The Delaware Department of Justice has consistently demonstrated that supervisory failures are met with meaningful consequences. In November 2025, the Investor Protection Unit entered into a consent order with Kovack Advisors, Inc., imposing $995,180 in penalties including for supervisory violations, underscoring that firms that fall short of such obligations will be held accountable to protect Delaware investors.  

To check the registration status of your financial professional, please visit brokercheck.finra.org. If you believe you have been misled by your financial professional or firm, please file a complaint with the Investor Protection Unit, available at: https://attorneygeneral.delaware.gov/fraud/ipu/ipu-complaint-form/. 

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