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. 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.
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. 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 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 over 40 years of 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 call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
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.
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.
Foothill Securities Customer Complaints
There have been a number of customer complaints filed against Foothill Securities stockbrokers and investment advisors over the years. We have launched investigations of current and former Foothill Securities advisors:
If you have lost money investing with any of these Foothill 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 Foothill 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 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?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
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 40 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.
Rate this Post
Loading...