A majority-owned subsidiary of Ameritas Life Insurance Corp., Ameritas Investment Corp. (“AIC”), began operations in 1984 as a privately-owned broker-dealer called Banker’s Life Nebraska Investment Corp. In 1986 the name changed to Ameritas Investment Corp. Today, AIC, which provides investment advisory services, has approximately $4.3B+ (as of Oct 2018) in assets under management (AUM). Headquartered in Lincoln, Nebraska, the firm serves 5.3M customers (as of 2021) in all 50 states as well as the District of Columbia.
Financial Misconduct at Ameriprise Financial
AIC is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
AIC and brokers backed by AIC have a long history of misconduct and complaints, dating back to 2000. The firm has also faced arbitration over misconduct, shelling out millions of dollars in fines.
In 2009, FINRA fined AIC alleging that one of its brokers, Nancy Ziering, used communications with the public in the form of written financial plans that failed to provide a sound basis for evaluating the products being recommended, contained misleading statements, and omitted material information, including risks. The representative also sold products to customers that were unsuitable based on their financial situations, and encouraged customers to use mortgage proceeds in order to fund securities transactions. AIC was ordered to pay $100,000.
In 2019, the SEC initiated proceedings after it alleged AIC to have breached its fiduciary duty by providing inadequate disclosures related to its mutual fund share class selection practices and the fees it received. AIC was found to have purchased, recommended, or held mutual fund share classes for clients and charged 12B-1 fees rather than less costly share classes of the same funds that the clients could have purchased. AIC was ordered to pay disgorgement of more than $3M as well as prejudgment interest.
Other reasons for the many fines levied against AIC over the years include:
- Misappropriation of funds
- Breach of fiduciary duty
- Breach of contract
- Negligence
- Fraud
- Unsuitability
- Misrepresentation and omissions
- Unauthorized trading
- Failure to supervise
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
Arkadios Capital
Founded in 2016 by David Millican, Arkadios Capital (“Arkadios”) is dually registered as a broker-dealer and Registered Investment Adviser.The firm, which states that is specializes in supporting high-quality, professional, and growth-oriented wealth management firms, is owned by Arkadios Holdings, Inc. As of March 2020, Arkadios had $3.5B+ assets under advisement (AUA). Headquartered in Atlanta, Georgia, the firm serves customers in all 50 states as well as the District of Columbia and Puerto Rico.
Financial Misconduct at Arkadios Capital
Arkadios is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Despite being a relatively young firm, Arkadios is already facing accusations of wrongdoing. According to his CRD report, Mark Thompson, an advisor with Arkadios, has been the subject of three separate customer complaints from 2020 to 2022.
In May 2020, one of Thompson’s prior customers filed a complaint for $50,000 in damages against Arkadios for the misrepresentation of private placements in February 2017. The complaint is currently pending.
A complaint filed in July 2020, was settled in February 2022 for $138,000 against Arkadios (and Triad Advisors LLC) regarding direct investments and real estate securities. The investor alleged that Mr. Thompson, as a representative of Arkadios (and Triad) recommended unsuitable alternative investments.
In March 2022, a customer brought a case against Arkadios (and Triad) seeking $1M in damages, alleging negligence, overconcentration, and unsuitable recommendations concerning alternative investments (direct investments and real estate securities). The case is currently pending.
If you have suffered significant loss as a result of unlawful or negligent behavior or misconduct from a broker at Arkadios Capital, then the firm may be held legally responsible to repay the damages.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
Ausdal Financial Partners
Formed in 1979 in Davenport, IA, by Robert B. Ausdal, Ausdal Financial Partners (“AFP”) is a full-service broker-dealerand Registered Investment Advisor with more than $1.5B in assets under management (AUM) as of April 2022. The firm serves all 50 states as well as the District of Columbia and Puerto Rico. While headquartered in Iowa, it also has offices in Suburban Chicagoland.
Financial Misconduct at AFP
AFP is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages. AFP has a long history of misconduct and complaints.
In 2012, FINRA initiated arbitration against AFP. The arbitration panel ordered AFP to pay $25,000 for failing to retain some email correspondence related to its business for over two years. Due to user error, for over two years, the firm failed to establish new email addresses on the server for several newly-registered representatives and associated personnel and their emails. The firm was able to retrieve emails for some of its representatives and associated personnel after discovering the error.
The firm permitted its registered representatives to use their personal email addresses so long as they forwarded securities-related emails to any of the firm’s established email review boxes. However, for a period of time, emails sent to one of these boxes did not save the emails, but would instead delete them on a weekly basis as they would become full.
In 2015, a FINRA arbitration panel ordered AFP to pay $1,250,762.67 in damages for breach of fiduciary duty, unsuitability, misrepresentation, breach of contract, failure to supervise, and negligence. This case stemmed from the misconduct of one of AFP’s financial advisors, Joan Norton. Norton was found to have improperly advised a customer, Cindy-Marie Rogers, to retire and transfer her retirement account into an annuity despite its unsuitability based on restrictions that prevented the customer from obtaining necessary income.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
Avantax Investment Services
Formed by a CPA in Dallas, Texas in 1983, Avantax Investment Services, Inc. (“Avantax”) is ranked as one of the top 10 independent broker-dealers, with 3,300 professionals managing $70B+ in assets. In 2015, Avantax acquired HD Vest and in 2019, it acquired 1st Global. Avantax Wealth Management, Inc. is the sole shareholder of Avantax, which is a subsidiary of H.D. Vest Financial Services. The firm serves clients in all 50 states as well as the District of Columbia, Puerto Rico, and the Virgin Islands.
Financial Misconduct at Avantax
Avantax is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Avantax has a long history of misconduct and complaints, dating back decades. Many of the firm’s misconduct stems from a failure to supervise its advisors, who in many instances have wronged the firm’s clients. In 1995, Avantax was ordered to pay $4,265,000.00 after a National Association of Securities Dealers (NASD) arbitration panel found that the firm was guilty of misrepresentation, omission of facts, suitability, and unauthorized trading.
In 2004, Avantax was ordered to pay a civil money penalty in the amount of $1,054,420 to the United States Treasury for Class A share violations and Class B share violations.
In 2015, the SEC fined Avantax $225,000 for failure to supervise its former registered representative, Lewis J. Hunter, in order to prevent and detect his misappropriation of funds. Once the firm realized it owed money to customers due to Hunter’s actions, it failed to make a reserve formula calculation and bank account deposit. It also failed to preserve emails.
And in 2016, Avantax was ordered to provide restitution for mutual fund purchases made since July 1, 2009, in the amount of approximately $219,930 plus interest after it was found to have overcharged customers who were otherwise eligible to receive applicable mutual funds sales charge wavers in the amount of $261,905 (what clients were charged including interest).
If you have suffered significant loss as a result of unlawful or negligent behavior or misconduct from a broker at Avantax, then the firm may be held legally responsible to repay the damages.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
Cadaret, Grant & Co., Inc.
Founded in 1985 and headquartered in Syracuse, New York, Cadaret, Grant & Co., Inc. (“Cadaret”) is one of the largest privately owned independent broker-dealers in the U.S. with around 750 financial professionals and $2.5B+ in assets under management (AUM). Cadaret became a FINRA member in 1982. In 1988, Cadaret purchased BNL Securities, a subsidiary of Bankers National Life. Cadaret was acquired by Atria Wealth Solutions in 2018. Today, the firm serves clients in all 50 states as well as the District of Columbia and Puerto Rico.
Financial Misconduct at Cadaret
Cadaret is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Cadaret has a long history of misconduct, complaints, and regulatory investigations. In 2010, FINRA fined Cadaret $125,000 for failing to maintain an adequate supervisory system. The firm failed to provide guidance to brokers, supervisors, and trading personnel on UIT sales in order to ensure that the proper discounts were provided.
In 2012, FINRA fined Cadaret $200,000 for allegedly recommending unsuitable investments, in particular variable annuities, to its clients. Cadaret was also censured for failing to supervise the representative who was responsible for giving unsuitable recommendations. Some elderly clients who were close to 80 or over the age of 80 were offered variable annuities that were sold with a rider that offered a potential increase to the death benefit prior to age 80. This was unsuitable because the clients that paid for a rider wouldn’t be able to use it or were ineligible to use it at the time of purchase. The sale of annuities constituted more than 94% of the representative’s business at Cadaret.
In 2019, Pennsylvania Counsel, Seamus Dubbs, initiated a proceeding against Cadaret, which was sanctioned to pay a fine of $90,000 for employing at least one unregistered investment advisor in violation of the law.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
Calton & Associates
Founded in 1987 and headquartered in Tampa, Florida, Calton & Associates is a full-service securities broker-dealer and Registered Investment Adviser with approximately 400 advisors and more than $6B in account assets. The firm serves all 50 states as well as the District of Columbia, Puerto Rico, and the Virgin Islands.
Financial Misconduct at Calton
Calton is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
With 18 disclosure events (12 regulatory fines and six arbitrations), Calton has a long history of misconduct dating back to 1993. This includes multiple instances of failing to supervise its agents. Brokerage firms that fail to supervise their agents may be liable for investment losses caused by their misconduct.
In October 2015, FINRA barred Calton advisor, Randy Burke, from the industry after he allegedly participated in private securities transactions, soliciting clients to invest in his outside business, Lodge Alaska, without first providing written notice to the firm. He was also alleged to have made material misrepresentations to an elderly purchaser, and misappropriated the funds invested for personal expenses.
In September 2019, former Calton advisor, Chris Kubiak, was sentenced to 30 months in prison after he was convicted of fraud between June 2015 and August 2018, stealing $370,000 from four clients, three of whom were elderly.
In 2021, FINRA censured and fined Calton $250,000 for failing to supervise sales of volatility-linked exchange traded products, resulting in customer losses on transactions that were unsuitable from the start.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
If you believe that you have been the victim of investment fraud or have been recommended unsuitable investments, you may have options. Call Meyer Wilson today!
Cambridge Investment Research
Formed in 1995 by Eric Schwartz, Cambridge Investment Research (“Cambridge), Inc. is one of the largest independent broker-dealers in the United States. According to Financial Advisor magazine, in 2022 Cambridge was the ninth largest broker-dealer based on revenues, with $1.4B (as of December 31, 2022).
Headquartered in Fairfield, Iowa, the firm has 3,800+ producing financial advisors and $144B in assets under advisement (AUA). It’s holding company is Cambridge Investment Group, Inc. The firm serves all 50 states as well as the District of Columbia, Puerto Rico, and the Virgin Islands.
Financial Misconduct at Cambridge Investment Research
Cambridge is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
With 14 disclosure events (10 regulatory fines and four arbitrations), Cambridge has a long history of misconduct.
In August 2013, the Securities and Exchange Commission (SEC) found that Cambridge advisor, Richard Sandru, had misappropriated at least $308,850 in supposed “financial planning” fees from at least 47 clients by forging their signatures or adding unnecessary costs to their Financial Planning Engagement (FPE) agreements. Sandru also failed to provide the services that were agreed upon in those agreements.
If a broker makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may also be liable for investment losses. Each investment must be suitable for the specific investor, taking into consideration the investor’s age, net worth, risk tolerance, experience, and financial needs.
Former Cambridge advisor, Brad C. Lawing had multiple complaints levied against him. In May, 2017, Lawing settled a claim with a client after he was alleged to have failed to inform them that selling their investments would cause significant capital gains. In November 2017 FINRA suspended Lawing for five months and required him to pay $11,754 in sanctions and restitution after (among other issues) he recommended shares of a business development company to three customers, two of whom did not satisfy the issuer’s suitability standards, while the third’s investment resulted in overconcentration. Lawing was found to have failed using reasonable diligence to make suitable recommendations.
In March 2021, FINRA fined Cambridge $3.1M+ for failing to conduct reasonable due diligence, supervise its representative’s recommendations of the Mutual Fund LIM Preservation & Growth Fund, and failed to establish a reasonably designed supervisor system to review fund recommendations.
In August 2021, the SEC sanctioned Cambridge $250,000 for failing to adopt written policies and procedures reasonably designed to protect customer records and information when cloud-based email services were used by some of its financial professionals, as is required by law.
While much of Cambridge’s misconduct stemmed from the failure to supervise its advisors, other types of misconduct included:
- Failure to adopt required policies and procedures
- Failure to conduct reasonable due diligence
- Failed to comply/follow procedure
- Breach of fiduciary duty
- Breach of contract
- Negligence
- Fraud
- Misrepresentation and omission of facts
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
If you believe that you have been the victim of investment fraud or have been recommended unsuitable investments, you may have options. Call Meyer Wilson today!
Centaurus Financial
Centaurus Financial, Inc. (“Centaurus”) is a top-ranked broker-dealer and Registered Investment Advisor headquartered in Anaheim, California. While it was founded as an education and training company in 1992, Ron King and Bob Keilly purchased the firm in 1995 and converted it to a full-service independent broker-dealer as it stands today. In 2013, Centaurus expanded into the Pacific Northwest, with a corporate office in Coeur d’Alene, Idaho. In 2016, the firm expanded its presence in the Southeast, with a corporate office in the Atlanta, Georgia Metro Area. Centaurus also has a corporate office in Leesburg, Virginia.
In 2022, InvestmentNews ranked Centaurus 21st of the top 100 independent broker-dealers in the U.S. based on total revenue; it has $4.6B assets under management (AUM). Centaurus serves all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Centaurus’ corporate office has 90 team members. The firm is currently owned by Federation of Financial Services, Stephen M. Kremer, and Michael P. Rubino with Frank King’s son, Ron King, serving as the Chairman and CEO.
Financial Misconduct at Centaurus Financial
Centaurus is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Centaurus has a long history of misconduct (23 disclosure events), paying out millions in securities arbitration awards and judgments. In October 2013, Centaurus faced a FINRA arbitration panel, after a customer alleged damages or losses from a Real Estate Investment Trust (REIT) stemming from breach of fiduciary duty, misrepresentation, omission of facts, suitability, failure to supervise, and negligence. As a result, Centaurus was ordered to pay $915,249.05.
In June 2016, it was found that Centaurus had failed to apply sales charge discounts to eligible Unit Investment Trust (UIT) purchases, resulting in customers paying excessive sales charges of about $85,281.62. Additionally, Centaurus was found to have failed to establish, maintain, and enforce a supervisory system reasonably designed to ensure that customers received sales charge discounts where eligible on all UIT purchases. It had been left to registered representatives to do so accurately. FINRA censured and fined Centaurus $100,000 and required the firm to pay $85,281.62 to customers.
Also in 2016, a FINRA arbitration panel ordered Centaurus to pay compensation of $150,600.01 to one of the parties and additional fees. This resulted from findings of account misrepresentation, omission of facts, failure to supervise, and negligence concerning:
- Hedge funds
- Annuities
- REITs
- Private equities
- Variable annuities
- Limited partnerships
If a broker makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may also be liable for investment losses. Each investment must be suitable for the specific investor, taking into consideration the investor’s age, net worth, risk tolerance, experience, and financial needs.
In June 2021, the Securities and Exchange Commission (SEC) fined Centaurus $250,000 and ordered it to pay $907,377 in disgorgement and $124,019 in prejudgment interest. Centaurus was found to have breached its fiduciary duty related to its receipt of third-party compensation from client investments with inadequate or no disclosure concerning its conflicts of interest. Some of these included:
- Mutual fund share classes that paid Centaurus 12B-1 fees;
- Specific mutual funds that generated service fee revenue; and
- Cash sweep products that resulted in Centaurus receiving revenue sharing.
There is currently a pending action, initiated September 27, 2022, against Centaurus. The case alleges that between September 2016 and September 2018, the firm failed to reasonably supervise a registered representative’s recommendations of UITs and alternative investments. In violation of FINRA rules. Brokerage firms that fail to supervise their agents may be liable for investment losses caused by their misconduct.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
If you believe that you have been the victim of investment fraud or have been recommended unsuitable investments, you may have options. Call Meyer Wilson today!
CFD Investments
Formed in 1990 by Mick Owens, CFD Investments (“CFD”) is one of the largest independent broker-dealers, assisting customers with stocks and bonds, financial planning, retirement planning, ETFs, annuities, mutual funds, investment management, and alternative investments. CFD is currently owned by Christopher M. Rockey and headquartered in Kokomo, Indiana with smaller branch offices through the country. The firm serves all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at CFD Investments
CFD Investments is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors.
In 2017, FINRA brought an action against CFD alleging that between October 2012 and July 2014 the firm failed to establish procedures to adequately supervise the sale of inverse and leveraged Exchange-Traded Funds (ETFs) despite selling $2M in approximately 150 transactions. Additionally, though these vehicles were intended to be traded intra-day, the average holding period for them was 300 days. CFD settled this actionpaying a $30,000 fine.
In January 2019, FINRA fined CFD $125,000 for failure to supervise variable annuity recommendations and exchanges made by its brokers between July 2014 and July 2016. Specifically, FINRA alleged that CFD lacked the proper supervisory systems to monitor the rates of exchanges, and therefore failed to supervise the sale of L-share (more expensive and more liquidity) variable annuities versus B-share (less expensive and less liquidity) annuities. This was especially egregious considering that almost 25 percent of CFD’s variable annuity transactions were exchanges.
In August 2020, FINRA initiated an action against CFD, alleging that the firm failed to perform adequate due diligence concerning an oil and gas private placement investment. As a result, CFD’s FINRA membership was suspended for 45 days in any and all private placement activities, and the firm was ordered to pay $750,000 in restitution to its customers.
If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages. Former Dallas, Texas CFD broker, Dana Bruce Vietor has been the subject of numerous actions for misconduct. In June 2019, a CFD customer initiated a variable annuities and direct-investment-related arbitration claim against Vietor, for breach of contract, breach of fiduciary duty, misrepresentations and omissions, negligence, suitability, and fraud. Vietor settled for $32,600.
In March 2021, Vietor settled a dispute with a customer who alleged that Vietor engaged in private securities transactions away from CFD. The client also alleged that the investments were promissory notes issued by a company that Vietor controlled. Vietor settled for $900,000 and has been barred from acting as a broker or associating with a broker-dealer firm.
In November 2022, a FINRA arbitration panel required Vietor to pay $5.7M+ for breach of fiduciary duty, fraud, misrepresentation, omission of facts, suitability, violation of blue sky laws, breach of contract, failure to supervise, and negligence concerning private equities and other types of securities.
You May Have a Claim! Contact Our Firm Now!
As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests. Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA).
If you believe that you have been the victim of investment fraud or have been recommended unsuitable investments, you may have options. Call Meyer Wilson today!
Arete Wealth Management
Formed in 1998 and headquartered in Chicago, Illinois, Arete Wealth Management is a full-serve independent broker-dealer directly owned by Arete Wealth, Inc. One of the fastest growing broker-dealers, in 2021, Arete Wealth acquired Center Street Securities, a Nashville-based securities broker-dealer with $1.04 billion in assets under management (AUM). After the acquisition, Arete Wealth, Inc. grew to $5.5 billion in AUM and 265 registered representatives nationwide.
Arete Wealth Management has $8.5B in assets under advisement (AUA), with 97 offices, and 318 wealth advisors, and 35+ alternative investments (as of July 25, 2022). The firm serves all 50 states as well as the District of Columbia, Puerto Rico, and the Virgin Islands.
Financial Misconduct at Arete Wealth Management
Arete is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
If a broker makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may also be liable for investment losses. Each investment must be suitable for the specific investor, taking into consideration the investor’s age, net worth, risk tolerance, experience, and financial needs. Arete has a history of failing to do just that.
In 2021, a FINRA arbitration panel awarded a former customer of Arete and his trust a whopping $515,061.98 and legal fees for GPB private placement fraud. GPB Capital Holdings was allegedly running a $1.5B Ponzi scheme. Arete was found to be guilty for breach of fiduciary duty, omission of facts, suitability, failure to supervise, and negligence.
The firm was also alleged to unsuitably invested its clients in GWG Holding’s Series L Bond, risky investments that are unrated and considered to be speculative. Since L Bonds are not publicly traded, they cannot be liquidated, which means that investors have no way of liquidating or selling them should they need cash. Additionally, without being publicly traded, L Bonds aren’t subject to the same regulatory examination. GWG filed for Chapter 11 bankruptcy protection in April 2022 after failing to provide bondholders with $13.6M in interest and maturity payments. Arete allegedly failed to perform necessary due diligence prior to recommending these bonds and customers were not given in-depth insight into the risks and value of them.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.