Founded in 1984, Securities America, Inc. (“Securities America”) is one of the largest broker-dealers in the nation, headquartered in La Vista, Nebraska. According to Securities America’s website, the firm has $118B in total client assets under administration. As of December 14, 2022, the firm had $45.4B in assets under management (AUM), 2,243 advisors, and 211,800 clients.
It is a subsidiary of Securities America Financial Corp. Securities America’s brokers are licensed in all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at Securities America, Inc.
Securities America 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.
Securities America and brokers backed by Securities America have a long history of misconduct. Per FINRA’s BrokerCheck report, the firm has 88 disclosures (56 regulatory events; 27 arbitrations; and 5 bonds).
In January 2023, FINRA initiated a claim against Securities America finding that the firm had failed to establish and maintain an adequate supervisory system that would reasonably ensure that all eligible customers received applicable sales charge waivers or special share classes regarding rolling over 529 plans from one state plan to another.
Securities America left it up to its registered representatives to decide whether Class A sales charge waivers or Class AR sales for 529 plan rollovers were available. However, the firm never offered its representatives any training on the matter.
As a result, Securities America failed to apply sales charge waivers or purchase Class AR shares in approximately 38% of 529 plan rollover transactions. This impacted approximately 250 accounts and caused $120,000 in unnecessary sales charges and fees. Securities America was censured and ordered to pay $122,845.59 plus interest, in restitution to customers.
In February, March, and April of 2021, Securities America was also censured and hit with fines and interest totaling more than $400,000 for various issues including unsuitability, failure to supervise, and breach of fiduciary duty.
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Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against the largest investment firms, such as Securities America, Inc., and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in securities 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.
