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 waivers 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.
