Fortune Financial Services, Inc. (“Fortune Financial”) (CRD# 42150) is a registered broker-dealer headquartered in Monaca, Pennsylvania.
Fortune Financial’s current BrokerCheck report lists four final regulatory events. The disclosed matters involve variable-annuity supervision, unsuitable annuity exchanges, electronic communications, municipal securities and 529 plans, branch inspections, private securities transactions, registration issues, and other supervisory deficiencies. The firm is currently active and is not suspended by any regulator.
Investors who suffered losses because of unsuitable recommendations, broker misconduct, misrepresentations, excessive fees, or supervisory failures may wish to consult an experienced investment fraud lawyer about their potential recovery options.
Can I Sue Fortune Financial Services, Inc.?
You may be able to pursue a claim against Fortune Financial when misconduct by the firm or one of its associated financial professionals caused or materially contributed to your investment losses.
Most brokerage customers sign account agreements containing mandatory arbitration provisions. These provisions generally require disputes to be resolved through FINRA arbitration rather than traditional court litigation.
An arbitration provision does not eliminate an investor’s right to seek compensation. It ordinarily determines the forum in which the claim must be presented.
How to Sue Fortune Financial Services, Inc. for Investment Losses
What Can I Do If I Lost Money at Fortune Financial Services, Inc.?
A potential claim against Fortune Financial generally begins with an investigation of the investor’s accounts, financial profile, communications, and the recommendations made by the financial professional.
Relevant evidence may include:
- Monthly and quarterly account statements;
- Trade confirmations;
- New-account and customer-profile forms;
- Emails, text messages, and other communications;
- Variable-annuity applications and exchange forms;
- Records of surrender charges, commissions, and fees;
- 529 plan and municipal-securities documents;
- Private-investment presentations;
- Notes concerning the investor’s objectives and risk tolerance;
- Records of disputed or unauthorized transactions; and
- Documents concerning the firm’s review of the account.
A FINRA arbitration lawyer can investigate the account activity, identify potentially responsible parties, calculate recoverable damages, and prepare a Statement of Claim.
The Statement of Claim generally identifies:
The compensation or other relief requested.
The alleged misconduct;
The securities or strategies involved;
The duties allegedly violated;
The relationship between the misconduct and the investor’s losses; and
Who Can Help Me Sue Fortune Financial Services, Inc.?
An experienced securities attorney who understands FINRA arbitration and has specific knowledge of Fortune Financial’s regulatory problems can help you navigate the claims process. The attorney will investigate your account activity, identify potential violations and breaches of duty, gather supporting documentation, and present your case before the arbitration panel. Legal representation significantly increases your chances of recovering losses, as these cases involve complex securities regulations and require knowledge of industry standards.
What is Fortune Financial Services, Inc.?
Fortune Financial (CRD# 42150) has been registered with the SEC and FINRA as a broker dealer since 1997. The company is controlled by the Blake Daniels and Gregory Bentley and headquartered in Monaca, Pennsylvania 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 250 registered representatives in every state. It is now one of the 50 largest independent broker-dealer and investment advisory firms in the United States.
Why Does Fortune Financial Services, Inc. Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Fortune Financial are known for weak supervision practices. These firms operate like franchises—opening many small offices nationwide to generate steady revenue without paying for full-service branch offices with on-site managers and compliance staff. This business model creates serious problems for investor protection.
The registered representatives at Fortune Financial typically run their own separate businesses. They’re not employees of the broker-dealer, so the firm has less control over their daily activities. These reps prioritize their own profits, often putting investor protection last. The supervisory structure relies on other independent contractors at remote Offices of Supervisory Jurisdiction (OSJs) to monitor these reps, but these supervisors aren’t full-time and often run their own businesses too.
This means there’s no immediate review of new accounts, securities transactions, or daily business activities. No one onsite can catch forged signatures, false information about client finances, or misleading sales pitches. Compliance audits might happen only once a year. The North American Securities Administrators Association (NASAA) has documented more sales abuse and investor losses at these independent firms compared to traditional brokerages with proper on-site supervision.
Fortune Financial Services, Inc. Has Many Different Regulatory Problems
Fortune Financial rapid growth has not been without consequences. There have been approximately 3 Federal, 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 scores of customer complaints filed against Fortune Financial 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. Fortune Financial is a repeat offender: there are at least 2 FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses.
A BRIEF OVERVIEW OF REGULATORY PROBLEMS FORTUNE FINANCIAL SERVICES, INC. HAS FACED
Fortune Financial 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:
Fortune Financial Sanctioned By FINRA For Supervisory Lapses
During the course of a FINRA audit, staff discovered that Fortune Financial effected transactions in municipal securities even though it was not properly qualified under the rules of the Municipal Securities Rulemaking Board (“MSRB”), and it failed to establish a supervisory system and written supervisory procedures (“WSPs”) to supervise municipal securities transactions. FINRA staff also discovered that Fortune Financial failed to conduct required branch office inspections, provide for reasonable review of correspondence, and retain all written correspondence. In addition, Fortune Financial failed to establish written procedures reasonably designed to supervise, and to record, representatives’ approved participation in private securities transactions. Moreover, FINRA found that Fortune Financial also failed to establish, maintain and enforce a reasonably designed system of supervisory control policies and procedures, and it failed to prepare a proper annual CEO certification. Finally, FINRA found that Fortune Financial failed to approve, prior to use, seven web sites established by representatives associated with the firm. FINRA concluded that all of this conduct violated MSRB Rules G-2, G-3 and G-27, Rule 17a-4 of the Securities Exchange Act of 1934 (Exchange Act), NASD Conduct Rules 3010, 3012, 3040, 3110 and 2210 and FINRA Rules 313 0 and 2010 and sanctioned the brokerage firm, by imposing a censure and a $45,000 fine.
Fortune Financial Sanctioned By FINRA For Supervisory Failures
In another FINRA investigation, the regulator discovered that Fortune Financial failed to: retain electronic communications relating to the firm’s business; obtain prior FINRA approval for a material change in business operations; register branch offices; and establish, maintain and enforce a supervisory system and/or written supervisory procedures that were reasonably designed to achieve compliance with all rules and regulations applicable to the firm’s business.
As a result, FINRA concluded that Fortune Financial violated Rule 17a-4 of the Securities Exchange Act of 1934 (“Exchange Act”) and FFS and Daniels violated NASD Conduct Rule 3110 (“Rule 3110”), NASD Membership and Registration Rule 1017 (“Rule 1017”), NASD Conduct Rule 3010 (“Rule 3010”) and NASD Conduct Rule 2110 (“RuIe 2110”), and censured and fined the brokerage firm $175,000.
*Above are only some of the regulatory disciplinary actions filed against Fortune Financial by FINRA. There is at least one more SEC, FINRA, NASSA, and/or state securities regulator investigations and enforcement actions reported on BrokerCheck as regulatory disciplinary proceeding disclosures.
How to File an Official Complaint Against Fortune Financial Services, Inc. or One of Its Brokers with FINRA
To file an official complaint against Fortune Financial or one of its brokers with FINRA, investors can submit a complaint through FINRA’s online complaint center or by contacting FINRA directly. The complaint should include detailed information about the misconduct, supporting documentation, and a clear explanation of the financial harm suffered. FINRA will review the complaint and may investigate the broker or firm if the allegations warrant further examination.
Filing a complaint with FINRA serves an important regulatory function, but it does not directly recover your investment losses. To seek financial compensation, you must file a FINRA arbitration claim against Fortune Financial and/or the responsible broker. This is a separate legal proceeding where you present evidence of wrongdoing and request monetary damages for your losses.
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Fortune Financial Services, Inc.
The Law Offices of Robert Wayne Pearce assists investors throughout the entire arbitration process—from initial case evaluation to presenting evidence before the arbitration panel. Attorney Pearce has over 45 years of personal experience in FINRA arbitration and has recovered more than $175 million for defrauded investors during his career. The firm handles all aspects of your case: investigating your account activity, identifying violations, gathering documentation, preparing legal filings, and advocating for maximum recovery at the arbitration hearing.
We offer free consultations to evaluate your potential claim and explain your legal options. During this consultation, we’ll review your account statements, discuss what happened with your investments, and assess whether you have grounds to pursue a FINRA arbitration claim against Fortune Financial.
Did Fortune Financial Services, Inc. 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. Fortune Financial 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 Fortune Financial 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 Fortune Financial Services, Inc. Today
For more than 45 years, Robert Wayne Pearce has represented investors seeking to recover losses caused by broker misconduct, negligence, unsuitable recommendations, and investment fraud.
The Law Offices of Robert Wayne Pearce, P.A. represents investors nationwide, including clients seeking assistance from a Pennsylvania investment fraud lawyer and investors in neighboring Ohio and West Virginia.
The firm generally handles qualifying investor-loss claims on a contingency-fee basis. Clients ordinarily do not pay an attorney’s fee unless the firm recovers compensation for them.
Call (800) 732-2889 for a free and confidential case review.
