Corbin Lambert (CRD #: 3191042), a broker registered with Securities America and an investment advisor registered with Continuum Financial, has been charged by the SEC with a “cherry-picking scheme,” according to his BrokerCheck record, accessed on October 14, 2020. Mr. Lambert was Continuum Financials’ CEO and has also served as the Chief Compliance Officer. The SEC alleges that during his time at Continuum Financial, Mr. Lambert concocted a complex scheme to keep profitable securities for himself and allocate undesirable trades to his clients.
As an investment advisor, Corbin Lambert has a fiduciary duty to work in his client’s best interests. The SEC Complaint alleges that his scheme defrauded his clients and solely served to further Mr. Lambert’s own financial interests.
Corbin Lambert executed trades using an omnibus account, which allows brokers to block purchase securities in the form of options. He allegedly delayed the allocation of those securities until he had observed how they performed. The SEC alleges that Mr. Lambert allocated the best-performing securities to his personal account, allowing him to enjoy first-day trading benefits and positive trading returns. Meanwhile, he allocated less favorable securities to his clients’ accounts.
Corbin Lambert specifically represented to his clients that Continuum would ensure fairness and employ review protocols to prevent conflicts of interest. The SEC alleges that Continuum did not document Lambert’s conflicted options trading, nor did it conduct periodic reviews of block trading. In fact, the SEC alleges that it was the broker-dealer’s fraud alert system that first flagged Corbin Lambert’s trades. Representatives from the broker-dealer confronted Mr. Lambert with their suspicions. Mr. Lambert allegedly misled his partners at Continuum about why the broker-dealer had contacted him. He was removed as CEO once his partners found out about the alleged fraud. Mr. Lambert remains a registered investment advisor with Continuum Financial as of October 14, 2020.
Corbin Lambert has passed the Series 66 Uniform Combined Law Examination, the Securities Industry Essentials Examination, the Series 7 General Securities Representative Examination, the Series 24 General Securities Principal Examination, and the Series 26 Investment Company Products/Variable Contracts Principal Examination. He is a registered broker in Arizona, Colorado, Florida, Georgia, Illinois, Kansas, Missouri, Nebraska, and Wisconsin. He is a registered investment advisor in Nebraska.
During his 21 years in the securities industry, Corbin Lambert has worked at 4 firms besides Continuum Financial and Securities America.
- MML Investors, LLC (CRD #: 10409)
- Securian Financial Services, Inc. (CRD #: 15296)
- Prudential Financial Planning Services (CRD #: 5685)
- Pruco Securities, LLC (CRD #: 5685)
If Corbin Lambert was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email email@example.com for your free case consultation with a securities attorney.