Foothill Securities, Inc. (“Foothill Securities”) (CRD#1027) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. If you have suffered investment losses at Foothill Securities due to broker misconduct, fraud, or negligence, you may be entitled to recover those losses through legal action. At the Law Offices of Robert Wayne Pearce, we have investigated Foothill 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.
Most investors don’t realize that even if you signed an arbitration agreement, you can still pursue claims against Foothill Securities—not in court, but through FINRA arbitration proceedings. This dispute resolution process is specifically designed for investment-related claims and allows you to hold brokers and brokerage firms accountable for the losses they cause. The key is to act quickly, as there are time limits for filing claims.
If you believe you have a claim against Foothill 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. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Foothill Securities?
If you’ve lost money caused by Foothill Securities and/or its employees’ misconduct then the answer is, YES, you can sue Foothill 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 extensive personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Foothill Securities in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Foothill Securities is to contact Attorney Pearce at our office.
How to Sue Foothill Securities for Investment Losses
What Can I Do If I Lost Money at Foothill Securities?
If you’ve experienced investment losses at Foothill Securities, you have the right to pursue compensation through FINRA arbitration. This is a binding dispute resolution process where an independent panel hears your case and makes a decision. Unlike courtroom litigation, FINRA arbitration is streamlined and specifically designed for securities disputes, which means cases typically resolve faster than traditional lawsuits.
The regulatory violations and supervisory failures documented against Foothill Securities—including their repeated problems with non-liquid REIT sales, failure to supervise registered representatives, and allowing “selling away” activities—suggest a pattern of inadequate oversight that may have directly contributed to your losses. These documented compliance failures create a foundation for pursuing claims because they demonstrate the firm’s inability or unwillingness to protect investors like you from unsuitable investments and broker misconduct.
Even if you signed paperwork when opening your account, you likely agreed only to resolve disputes through arbitration, not to give up your right to seek compensation entirely. Many investors mistakenly believe they have no recourse after signing these agreements, but FINRA arbitration provides an effective path to recovery. The process allows you to present evidence of misconduct, call witnesses, and hold both the individual advisor and Foothill Securities accountable for violations of industry rules and fiduciary duties.
Who Can Help Me Sue Foothill Securities?
The Law Offices of Robert Wayne Pearce has extensive experience handling cases specifically involving Foothill Securities and similar independent broker-dealers. Our firm understands the supervisory failures common to independent broker-dealer business models and how to build compelling cases around these systemic issues. We know how to navigate FINRA’s arbitration process, gather the necessary evidence, and present claims in a way that maximizes your chances of recovery.
What is Foothill Securities?
Foothill Securities (CRD#1027) 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, Foothill 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.
Why Does Foothill Securities Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Foothill Securities are notorious for weak oversight and supervision of their financial advisors. This happens because of their franchise-style business model, which prioritizes rapid expansion and fixed revenues over investor protection. The firm opens many offices nationwide but avoids the costs of full-service branches with on-site managers and compliance officers.
Instead of direct employees, most advisors at independent broker-dealers operate as separate incorporated businesses. They aren’t controlled the same way employees at traditional brokerage firms are. This structure allows advisors to maximize their own profits while often putting investor protection at the bottom of their priority list.
Supervision at firms like Foothill Securities typically relies on Offices of Supervisory Jurisdiction (OSJs)—remote offices staffed by other independent contractors who run their own businesses and aren’t full-time supervisors. These OSJ managers operate from geographically distant locations and cannot effectively monitor the day-to-day activities of individual advisors. There’s usually no immediate review of new accounts, transactions, client correspondence, or business activities unrelated to securities.
This lax supervision leaves investors vulnerable. Sales of securities may not be reviewed or authorized by anyone except the advisor earning a commission. Problems like forged signatures, inaccurate client information, and misleading sales materials often go undetected because there’s no one on-site to catch them. In many cases, advisors receive only one compliance audit per year.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealers than at traditional brokerage firms with proper on-site supervision.
Foothill Securities Has Many Different Regulatory Problems
Foothill Securities’ rapid growth has not been without consequences. There have been approximately 5 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) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been many customer complaints filed against Foothill 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. Foothill Securities is a repeat offender: there are over 5 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Foothill Securities Has Faced Over the Years*
Foothill Securities has been repeatedly censured, warned, and fined 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:
FINRA Censures and Fines Foothill Securities for Supervisory Failure Concerning Sales of Non-Liquid REITs
Brief Overview: Without admitting or denying the findings, Foothill Securities consented to the sanctions and to the entry of FINRA findings that it failed to establish reasonable supervisory systems and procedures concerning sales of non-liquid REITs in amounts that exceeded the firm’s asset concentration guidelines. FINRA stated that the firm maintained written guidelines for limiting customers’ investments in non-exchange traded REITs and other non-liquid investments and that the guidelines stated that no single order in one non-liquid product should equal more than 10% of a customer’s investable net worth as of the time the order is placed and that no order should cause a customer to have more than 20% of his or her investable net worth in non-liquid investments. One advisor requested the firm provide a written customer acknowledgment that requested a customer signature to acknowledge that the customer was purchasing a non-traded REIT in an amount that exceeded the guidelines. After that, the advisor and one other recommended an investment in nonexchange traded REITs for additional customers outside the guidelines and had those customers sign the acknowledgment to complete the transactions. The firm approved those sales, even though it did not take reasonable steps to ensure that the registered representatives had informed the firm that they were recommending a transaction beyond the guidelines and were providing the acknowledgment to their customers.
Foothill Securities Fined by NASD for Registered Representative Activities While Deemed Inactive
Brief Overview: A Foothill Securities employee allegedly engaged in activities requiring registration while deemed inactive. Specifically, the firm allegedly permitted an employee to engage in activities requiring registration while deemed inactive for failing to satisfy the regulatory element of continuing education and failing to establish, maintain, and enforce written procedures to supervise the activities of registered representatives and associated persons that were reasonably designed to achieve compliance with NASD Rules. As a result, the firm was fined $2,500.00.
Foothill Securities Censured and Fined for Registered Representatives’ Selling Away
Brief Overview: Selling away is when a broker solicits a client to purchase securities not held or offered by the brokerage firm. Foothill Securities was censured and fined after it was discovered that a registered representative of the firm sold away. As a result, Foothill was censured and fined $4,000.00.
*Above are only some of the regulatory disciplinary actions filed against Foothill Securities by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 2 BrokerCheck disclosures.
How to File an Official Complaint Against Foothill Securities or One of Its Brokers with FINRA
If you believe Foothill Securities or one of its registered representatives engaged in misconduct that caused you financial harm, you can file a formal complaint with FINRA. The complaint initiates the arbitration process, which is the legally binding method for resolving securities disputes when you’ve signed an arbitration agreement.
To file a complaint, you’ll need to submit a Statement of Claim to FINRA Dispute Resolution Services. This document outlines the nature of your dispute, the parties involved, the damages you’ve suffered, and the legal basis for your claims. The statement must be specific about the misconduct alleged—whether it’s unsuitable investment recommendations, churning, fraud, misrepresentation, or breach of fiduciary duty.
FINRA charges filing fees based on the amount of damages claimed, which range from $50 for small claims to several thousand dollars for larger disputes. Once filed, FINRA serves the complaint on Foothill Securities, and the firm must respond within 45 days. The case then proceeds to arbitration hearings where both sides present evidence and witnesses before a panel of arbitrators.
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Foothill Securities
Navigating the FINRA arbitration process on your own can be overwhelming, especially when facing a large brokerage firm with experienced legal counsel. The Law Offices of Robert Wayne Pearce, P.A. assists investors through every step of the complaint and arbitration process—from drafting a compelling Statement of Claim to presenting evidence at the arbitration hearing.
With over 45 years of experience specifically in securities arbitration, Attorney Pearce understands how to build cases against firms like Foothill Securities. The firm has successfully recovered over $175 million for defrauded investors and knows how to expose the supervisory failures and regulatory violations that independent broker-dealers often try to minimize or hide.
Attorney Pearce offers free consultations to evaluate your case and explain your legal options. During this consultation, we’ll review your account statements, correspondence, and investment history to determine if you have viable claims. Contact us today to discuss your case and learn how we can help you hold Foothill Securities accountable for your investment losses.
Did Foothill 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. Foothill 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 Foothill 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 Foothill Securities Today
The investment loss 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 Foothill 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.
