Arete Wealth Management, LLC (“Arete Wealth”) (CRD# 44856) has faced numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors. If you lost money due to fraud, negligence, or misconduct by Arete Wealth or its financial advisors, you may be able to recover your losses through FINRA arbitration.
At the Law Offices of Robert Wayne Pearce, we have investigated Arete Wealth and its regulatory and customer complaints. We have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors. Even if you signed an arbitration agreement when opening your account, you can still pursue claims to recover your investment losses.
Don’t wait to take action. Investment fraud claims have strict time limits, and evidence can disappear over time. The sooner you consult with an experienced securities attorney, the better your chances of recovering your losses.
Can I Sue Arete Wealth Management, LLC?
Yes, you can sue Arete Wealth Management, LLC if you have lost money due to fraud, negligence, breach of fiduciary duty, or other broker misconduct by the firm or its employees. Most investors, however, unknowingly waive their right to file a lawsuit in court and instead are required to pursue claims through a FINRA arbitration proceeding.
FINRA arbitration is a legal forum specifically designed to resolve disputes between investors and brokerage firms. It functions similarly to a court trial but is typically faster and less formal. In arbitration, your case is heard by a panel of arbitrators who review evidence, hear testimony, and issue a binding decision. Importantly, FINRA arbitration awards are legally enforceable, meaning that if you win, the firm must pay the damages awarded.
How to Sue Arete Wealth Management for Investment Losses
Suing Arete Wealth Management for investment losses typically requires filing a FINRA arbitration claim rather than a traditional lawsuit. This is because most brokerage account agreements contain mandatory arbitration clauses that require disputes to be resolved through FINRA’s arbitration process. However, this does not prevent you from recovering your losses—arbitration is simply a different legal forum than court.
What Can I Do If I Lost Money at Arete Wealth Management?
If you lost money at Arete Wealth Management, you should first gather all documentation related to your investments, including account statements, trade confirmations, correspondence with your advisor, and any marketing materials you received. These documents will be critical in establishing your claim. Next, consult with an experienced securities arbitration attorney who can evaluate whether you have a viable case based on the firm’s documented regulatory violations and the specific circumstances of your losses.
The regulatory problems Arete Wealth has faced—including SEC charges for fraud related to unauthorized securities sales, failure to supervise representatives, and misleading settlement agreements—suggest systemic issues within the firm’s compliance and supervisory framework. These failures create opportunities for misconduct that directly harms investors. For example, if your advisor recommended unsuitable investments, engaged in unauthorized trading, or sold you securities without proper due diligence, these actions may constitute fraud or negligence for which Arete Wealth can be held accountable.
The FINRA arbitration process begins with filing a Statement of Claim that outlines the facts of your case, the legal violations committed, and the damages you suffered. After the claim is filed, the case proceeds through discovery (where both sides exchange documents and information), pre-hearing conferences, and ultimately a hearing before a panel of FINRA arbitrators. The arbitrators have the authority to award monetary damages, including lost investment value, lost profits, and in some cases, attorneys’ fees and costs.
Who Can Help Me Sue Arete Wealth Management?
An experienced securities arbitration attorney can help you sue Arete Wealth Management by navigating the complex FINRA arbitration process on your behalf. This includes investigating the specific violations that may have affected your account, drafting and filing your Statement of Claim, conducting discovery to gather evidence, preparing witnesses, and presenting your case at the arbitration hearing. The Law Offices of Robert Wayne Pearce has extensive experience handling FINRA arbitration cases against Arete Wealth and similar firms, and we understand how to connect the firm’s documented regulatory failures to individual investor losses.
Critically, FINRA arbitration cases have strict time limits (typically six years from the date of the problematic transaction or discovery of the fraud). Missing these deadlines can permanently bar your claim, regardless of how strong your case may be. This makes early consultation with an attorney essential to protecting your legal rights.
What is Arete Wealth Management, LLC?
Arete Wealth (CRD# 44856) has been registered with the SEC and FINRA as a broker-dealer since 1998. The company is controlled by Arete Wealth, Inc., and its principals and is headquartered in Chicago, Illinois, with small branch offices located throughout the United States. Its independent broker-dealer business model has grown through acquisition and organic development of primarily one- and two-person registered representative offices supervised remotely. Today, there are over 100 Arete Wealth branch offices with over 265 registered representatives in every state. It is now one of the 50 largest independent broker-dealer and investment advisory firms in the United States.
Arete Wealth Management In Trouble – Latest News
Yes, Arete Wealth Management, LLC is facing significant trouble in 2024 and 2025. The firm has encountered major regulatory actions, including a January 17, 2025, SEC lawsuit alleging fraud related to the sale of over $8 million in unapproved shares of Zona Energy Inc. SEC.gov Additionally, Arete disclosed settlements totaling more than $1.1 million in the first quarter of 2024 regarding investor claims InvestmentNews, marking a substantial financial impact on the firm.
The most serious development involves SEC charges against the firm, its affiliate Arete Wealth Advisors LLC, Chief Compliance Officer UnBo Chung, and representatives Joey Miller, Jeff Larson, and Randy Larson. The allegations center on “selling away,” which is prohibited by securities laws SEC.gov, where representatives sold unauthorized securities while concealing their activities from the firm. After learning about the unauthorized sales, Chung and Arete management allegedly orchestrated misleading settlement agreements signed by more than 100 clients containing false statements and illegal liability disclaimers.
Why Does Arete Wealth Management Have So Many Bad Reviews and Customer Complaints?
Arete Wealth Management has accumulated numerous customer complaints and regulatory problems because of its independent broker-dealer business model, which prioritizes growth and low operational costs over investor protection. Independent broker-dealers like Arete operate as franchise-type organizations with many small offices nationwide, generating steady monthly revenues without the expenses of traditional full-service branch offices that have on-site managers, compliance officers, and operational staff.
The registered representatives at these independent firms generally operate as separately incorporated businesses rather than employees of the broker-dealer. This means they are not controlled or supervised in the same way as representatives at traditional brokerage firms. The typical supervisory structure uses other independent contractors to run Offices of Supervisory Jurisdiction (OSJs) that monitor representatives from geographically remote locations, then report to the main company’s compliance office at headquarters. These OSJ supervisors are not full-time employees dedicated solely to supervision—they often run their own brokerage, insurance, and other businesses simultaneously.
Because of this structure, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives. There is generally no immediate review of new accounts, securities transactions, business records, cash or securities handling, correspondence, or business activities unrelated to securities brokerage. This lax supervision leaves investors vulnerable to sales of securities that have not been reviewed or authorized by anyone except the sales representative earning a commission. There may be no one on-site to detect forged signatures on documents, inaccurate client information that obscures unsuitable investment recommendations, or misrepresentations in sales literature and client correspondence. Many of these offices receive only one compliance audit visit per year.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealer firms than at traditional brokerage firms with on-site supervision. This pattern exists because the business model inherently prioritizes profit over investor protection, creating an environment where misconduct can flourish unchecked.
A Brief Overview of the Complaints and Regulatory Problems Arete Wealth Management, LLC Has Faced Over the Years
Arete Wealth has accumulated numerous regulatory violations and customer complaints throughout its history. In February 2024, the firm faced a $75,000 arbitration loss and previously encountered a $515,000 arbitration claim in 2021 regarding high-risk private placements managed by GPB Capital Holdings The White Law Group.
The firm has been repeatedly sanctioned by FINRA for supervisory failures. FINRA found that Arete Wealth failed to enforce its written supervisory procedures regarding due diligence for private offerings, resulting in a $25,000 fine. Arete Wealth Management: Customer Complaints & Regulatory Actions.
The recent Zona Energy scandal represents the firm’s most serious crisis. After learning about the unauthorized sales, Chung and Arete management allegedly orchestrated misleading settlement agreements signed by more than 100 clients containing false statements and illegal liability disclaimers. SEC.gov. The three representatives involved were terminated in November 2023 for not being forthcoming during internal investigations.
Arete Wealth Management Has Many Different Regulatory Problems
Arete Wealth has been censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. For example, FINRA investigated the broker-dealer and found that Arete Wealth failed to enforce its written supervisory procedures regarding due diligence for private offerings. Specifically, Arete Wealth failed to document its due diligence efforts for three offerings and, for one of these offerings, failed to perform adequate due diligence. According to FINRA, this conduct violates NASD Conduct Rule 3010 and FINRA Rule 2010, and it censured and fined the firm $25,000.
How to File an Official Complaint Against Arete Wealth Management, LLC or One of Its Brokers with FINRA
File an official complaint against Arete Wealth Management, LLC or its brokers with FINRA by using FINRA’s Investor Complaint Center. Complaints may involve fraud, negligence, or breach of fiduciary duty.
These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Arete Wealth without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Arete Wealth Management
The Law Offices of Robert Wayne Pearce, P.A. assists investors in navigating the entire FINRA arbitration process from initial case evaluation through final award. We begin with a thorough investigation of your account history, trading records, and communications with your advisor to identify specific violations of securities laws or FINRA rules. Our team then drafts a comprehensive Statement of Claim that connects Arete Wealth’s documented regulatory failures to the specific harm you suffered, whether through unsuitable recommendations, unauthorized trading, failure to supervise, or outright fraud.
Throughout the arbitration process, we handle all legal filings, discovery requests, witness preparation, and hearing presentations on your behalf. With over 45 years of experience in securities arbitration and more than $175 million recovered for investors, Attorney Robert Wayne Pearce understands how to build compelling cases against firms like Arete Wealth that have persistent supervisory and compliance problems. We offer free initial consultations to evaluate your case and discuss your legal options.
Did Arete Wealth Management Advisor Misconduct Cause You Investment Losses?
If you believe Arete Wealth Management advisor misconduct caused your investment losses, you should not wait until it’s too late to file a claim. FINRA arbitration claims have strict time limits, and evidence can become unavailable as time passes. Early consultation with an experienced securities attorney can help preserve your legal rights and maximize your chances of recovery.
Common forms of advisor misconduct at firms like Arete Wealth include unsuitable investment recommendations, unauthorized trading, churning and excessive trading, failure to diversify, elder financial abuse, private placement fraud, and sales of unregistered securities. If any of these issues affected your account, you may have grounds for a FINRA arbitration claim against both your advisor and Arete Wealth Management for failure to supervise.
Consult With An Attorney Who Recovers Investment Losses Caused By Arete Wealth Management, LLC Today
The securities attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Arete Wealth Management cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
