First Allied Securities, Inc. (“”) (CRD# 32444) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated First Allied Securities, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against First Allied Securities, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. 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.
Can I Sue First Allied Securities?
If you’ve lost money caused by First Allied Securities and/or its employees’ misconduct then the answer is, YES, you can sue First Allied Securities but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue First Allied Securities in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against First Allied Securities is to call Attorney Pearce at our office at 800-732-2889.
What is First Allied Securities?
First Allied Securities (CRD# 32444) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, First Allied Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
First Allied Securities Has Many Different Regulatory Problems
First Allied Securities’ rapid growth has not been without consequences. There have been approximately 34 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against First Allied Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. First Allied Securities is a repeat offender: there are over 34 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems First Allied Securities Has Faced Over the Years*
First Allied Securities has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
First Allied Securities Fined For Failure To Supervise Structured Products Sales
Brief Overview: First Allied Securities, Inc., a San Diego-based broker-dealer, has been fined $950,000 by FINRA for its failure to appropriately supervise the sales of structured products to its retail customer base. The firm lacked written supervisory procedures and supervision systems to identify and prevent unsuitable structured products sales. This violation of FINRA Rule 2010 and NASD Rules 2110 and 3010 occurred between October 2006 and January 2012. Additionally, First Allied Securities was cited for failing to supervise non-traditional exchange-traded funds (ETFs) and consolidated reports, leading to further violations of FINRA Rule 2010 and Rule 3010. The firm’s supervisory failures included inadequate monitoring of holding periods for non-traditional ETFs and insufficient verification of asset valuations in consolidated reports.
First Allied Securities Fined for Mutual Fund Sales-Charge Waivers and Variable Annuities Supervision Failure
Brief Overview: First Allied Securities has faced several disciplinary actions resulting in fines and ordered restitution. In August 2017, the firm was censured and required to pay approximately $876,915 in restitution to eligible customers for mutual fund sales-charge waivers. In November 2016, FINRA fined First Allied and four other Cetera firms for failure to supervise the sales of variable annuities, leading to ordered restitution to investors.
*Above are only some of the regulatory disciplinary actions filed against First Allied Securities by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 34 BrokerCheck disclosures.
First Allied Securities Customer Complaints
There have been scores of customer complaints filed against First Allied Securities stockbrokers and investment advisors over the years. We have launched many investigations of current and former First Allied Securities advisors:
- Jeffrey Miller of American Portfolios Financial Services, Inc.
- Daniel Brunette of First Allied Securities, Inc.
- Douglas Hyer of First Allied Securities, Inc
- Christopher Larochelle of DFPG Investments, LLC
- Andrew Nardella of First Allied Securities
- Brian Donnelly of First Allied Securities, Inc.
- Michael Maloney of First Allied Securities, Inc.
- Gregory Matsen of First Allied Securities
- Edward Yoon of First Allied Securities, Inc.
- Peter Deangelis of First Allied Securities, Inc.
- Brian Dibrino of American Portfolios Financial Services, Inc.
- Robert Kasten of Securities America, Inc
- Shlomo Strugano of First Allied Securities, Inc and formerly with Kovack Securities
- Sterling Hirsch of Infinity Financial Services
- Martin Berman Of First Allied Securities
- Larry Boggs of International Assets Advisory
- Terry Anderson of First Allied Securities
- Michael Bullis of Raymond James Financial Services
- John Cheang of Ameriprise Financial Services
- Daniel Goldman of First Allied Securities
- Matthew Hickey of First Allied Securities
- Joseph Langlois of DFPG Investments
- Gregory Levine Formerly With First Allied Securities
- Ronald Kresel of Ameriprise Financial Services
- Stephen Oliver of First Allied Securities
- William Saplicki of LPL Financial
- Matthew Williams Formerly With Vanguard Marketing
- Chad Barancyk of Great Point Capital LLC
- Christopher Braccia of First Allied Securities, Inc.
- Christopher Rubano of First Allied Securities, Inc.
- Derek McLean of First Allied Securities, Inc.
- Mark Haenny LPL Financial LLC
- Mark Markland of Sagepoint Financial, Inc.
- Martin Berman of Cetera Advisors LLC
- Masood Azad formerly with First Allied Securities, Inc.
- Maurice McKinney formerly with Concorde Investment Services, LLC
- McFaddin Moise, III of Merrill Lynch, Pierce, Fenner & Smith Incorporated
- Neil Fineman formerly with First Allied Securities, Inc.
- Peter Rhee of Cetera Investment Advisers LLC
- Stephen Lawler of Cetera Advisors LLC
- Michael DiPietro of Centaurus Financial, Inc.
If you have lost money investing with any of these First Allied Securities advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does First Allied Securities Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did First Allied Securities Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. First Allied Securities is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. 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 First Allied Securities without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By First Allied Securities Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with First Allied Securities 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.