If Webull Financial LLC or a broker acting on its behalf engaged in misconduct that harmed your investment portfolio, you may be able to recover your losses. When investing, you trust your brokerage firm to provide accurate details, transparent disclosures, and lawful trading services. When those obligations are not met, you can hold the firm accountable.
Meyer Wilson Werning has recovered over $350 million for victims of investment fraud and misconduct. Our investment fraud lawyers have experience pursuing brokerage firm investment loss claims against major financial institutions nationwide, and our proven track record shows our commitment and resources. Reach out today for a free initial consultation.
About Webull Financial LLC
Webull Financial LLC (“Webull”) is a commission-free, mobile-focused online brokerage firm founded in 2017. It became a Financial Industry Regulatory Authority (FINRA) member in 2018 and quickly grew in popularity among self-directed retail investors due to its low-cost trading, app-based interface, and focus on newer asset classes like cryptocurrency.
Webull offers a range of financial services and investment products designed for retail traders, including:
- Equities
- ETFs
- Options
- Margin accounts
- Cryptocurrency trading (through affiliates)
- Cash management tools
- Research and market data
- App-based trading technology
Headquartered in New York, Webull operates with a relatively small number of registered representatives compared to traditional wirehouses but services millions of retail accounts nationwide.
While Webull markets itself as a low-cost, accessible platform for everyday investors, its rapid growth and heavy reliance on digital marketing and influencer-driven outreach have drawn regulatory scrutiny.
Complaints Against Webull Financial and Regulatory Oversight
As a FINRA-licensed brokerage firm, Webull must supervise its communications, maintain accurate books and records, deliver required disclosure documents, and ensure compliance with federal securities laws.
When these obligations are not met, investors can be exposed to risks they were never properly warned about. These offenses can include exaggerated claims, misleading promotions, or missing information about conflicts, fees, and risks.
Complaints against Webull Financial LLC have led to regulatory actions for a variety of financial improprieties, including:
- Supervisory failures
- Recordkeeping failures
- Inadequate oversight of communications
- Improper disclosures
- Failures related to Form CRS delivery
- Violations of key FINRA advertising and supervisory rules
If you suffered losses that may have been linked to misleading statements, undisclosed risks, unsuitable recommendations, or missing disclosures, you may have grounds to pursue a claim. The investment fraud lawyers at Meyer Wilson Werning can conduct a thorough investigation into your allegations to determine whether you have legal grounds for pursuing compensation.
Regulatory Action in the Form of a $1.6 Million FINRA Settlement
In one of its most significant actions involving Webull to date, FINRA fined Webull Financial LLC $1.6 million for widespread supervisory and compliance failures occurring between 2019 and 2022. These failures directly affected how retail investors received information and interacted with the platform.
Failure to Supervise Social Media Influencers
One of the biggest supervisory failures by Webull during this period was that the company allowed influencers to promote the firm on social media without:
- Adequate oversight
- Required review of communications
- Retention of promotional material
- Controls to prevent exaggerated or promissory claims
Some influencer posts improperly suggested guaranteed returns or minimized risks. These statements violate FINRA Rule 2210, which prohibits misleading advertising.
Failures Related to Form CRS Delivery
The Customer Relationship Summary (Form CRS) contains important information that needs to be properly communicated. From mid-2020 through 2022, Webull failed to:
- Deliver the required Form CRS to certain customers
- Maintain proper records documenting delivery
- Implement supervisory systems to ensure compliance
Without proper disclosure, investors may have missed key information about Webull’s services, conflicts of interest, and fees.
Violations Cited That Led to the Settlement
During their investigation into Webull Financial LLC, FINRA identified violations of a variety of regulations, including:
- FINRA Rule 2010
- FINRA Rule 2210
- FINRA Rule 2220
- FINRA Rule 3110
- FINRA Rule 4511
- SEC Rule 17a-3
- SEC Rule 17a-4
- SEC Rule 17a-14
These rules cover advertising standards, supervisory duties, and recordkeeping obligations.
How Webull’s Failures May Impact Investors
Regulatory violations like these can materially affect retail investors. Problems may include:
- Relying on exaggerated marketing claims
- Not receiving balanced information about risks
- Missing disclosures that would have influenced account choices
- Falling victim to unsuitable trading strategies promoted without proper oversight
If you believe your losses stemmed from misleading promotions, missing disclosures, or compliance failures at Webull, you may have grounds for a claim.
Determining Whether You Have a Valid Claim Against Webull
Challenging a brokerage firm, especially one backed by sophisticated technology and rapid growth, can feel overwhelming. However, with an experienced investment fraud attorney on your side, you level the playing field. Speak to a lawyer immediately if you suspect you have suffered due to misconduct. Your attorney can help determine whether you have a valid claim.
At our firm, we can only help investors who have suffered losses due to the actions of a licensed financial advisor or broker. Some important details about our firm include that we:
- Tailor our legal approach to each client
- Have represented investors nationwide and internationally
- Pursue recovery through FINRA arbitration, litigation, and negotiation
If you suffered losses due to Webull’s negligence, misleading promotions, or failure to provide required disclosures, you may have a right to recover what you lost.
Get Help From a Knowledgeable Investment Fraud Lawyer Today
Cases involving brokerage misconduct often hinge on complex regulatory rules and detailed financial records. At Meyer Wilson Werning, our attorneys understand FINRA regulations, investor protection laws, and the strategies Webull Financial LLC and other major firms use when defending claims. We are ready to help you pursue compensation and justice.
Contact us today for a free case evaluation. We will help you understand your options and fight for your financial recovery. Our attorneys work on a contingency fee basis, which means there is no upfront fee to retain our services, and we only get paid if you recover compensation. When you choose our team, you get risk-free legal representation.