IBN Financial Services, Inc. (“IBN Financial Services”) (CRD#42360) has many different complaints filed by FINRA (Financial Industry Regulatory Authority) and state regulatory organizations. At the Law Offices of Robert Wayne Pearce, we have investigated IBN Financial Services, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this type of organization.
If you believe you have a claim against IBN Financial Services, 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 IBN Financial Services?
If you’ve lost money caused by IBN Financial Services and/or its employees’ misconduct then the answer is, YES, you can sue IBN Financial Services, 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 IBN Financial Services in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against IBN Financial Services 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 IBN Financial Services?
IBN Financial Services (CRD#42360) 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, IBN Financial Services 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.
IBN Financial Services Has Many Different Regulatory Problems
IBN Financial Services’ rapid growth has not been without consequences. There have been approximately 8 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 customer complaints about against IBN Financial Services 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. IBN Financial Services is a repeat offender: there are 8 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems IBN Financial Services Has Faced Over the Years*
IBN Financial Services 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:
State of Maine Office of Securities Fines IBN Financial for Failing to Notify Administrator of CRD Disclosure
Brief Overview: The State of Maine Office of Securities initiated an investigation into IBN Financial Services that revealed the firm failed to notify the administrator within 15 days after reporting a disclosure in a CRD in violation of a conditional licensing order. The conditional licensing order no. 2020-03 required IBN to make any required disclosures of any investigation or proceeding on the central registration depository and to send written notification of the occurrence to the administrator, along with copies of any relevant information and/or documentation, within fifteen (15) calendar days of learning of the incident. Although IBN made the required disclosure on the CRD, the firm failed to send written notification of the occurrence to the administrator or provide copies of any relevant information and/or documentation. As a result, the firm was fined.
Massachusetts Securities Division Censures and Fines IBN Financial Services for Failure to Register its Investment Adviser Representative
Brief Overview: The Massachusetts Securities Division initiated an investigation into IBN Financial Services that revealed IBN Financial Services failed to register its investment adviser representative, who had a place of business in Massachusetts, and its broker-dealer agent prior to providing investment advisory services and agent prior to providing investment advisory services and transacting securities business in Massachusetts in violation of the state’s laws. As a result, IBN Financial services was censured and fined.
FINRA Censures and Fines IBN Financial Services for Registered Representatives’ Outside Business Activity
Brief Overview: Without admitting or denying the findings, IBN Financial Services consented to the sanctions and to the entry of FINRA findings that it failed to establish, maintain, and enforce a supervisory system reasonably designed to ensure it evaluated whether its registered persons’ proposed OBAs constituted outside securities activities. FINRA stated that the firm knew that two of its registered representatives were engaged in OBAs that involved investment funds and private placement offerings, but it did not evaluate whether the activity constituted an outside securities activity. Although the firm understood that the registered persons’ OBAs involved private placement offerings and were investment related, it failed to evaluate whether the proposed activities would interfere with the registered persons’ responsibilities to the firm or the firm’s customers or be viewed as part of the firm’s business. As a result, the firm was censured and fined.
FINRA Censures and Fines IBN Financial Services for Omitting Material Information Related to Limited Partnership Interest Sold to Investors
Brief Overview: Without admitting or denying the findings, IBN Financial Services consented to the sanctions and to the entry of FINRA findings that it negligently omitted to tell investors in two offerings related to an alternative asset management firm that the issuer failed to timely make required filings with the SEC. FINRA that the firm sold limited partnership interests in two private sector companies after receiving an email from the alternative asset management firm notifying it of delays filing audited financial statements for the private sector companies and its stated intention to complete a forensic audit. The sales totaled $466,500 and the firm received a total of $32,385 in commissions from the sales. However, the firm’s representatives did not inform the customers that the private sector companies had not timely filed their financials with the SEC or the reasons for the delay. FINRA said the delay in filing audited financial statements was material information that should have been disclosed. As a result, the firm was censured and fined.
FINRA Censures and Fines IBN Financial Services for Failure to Maintain Required Minimum Capital
Brief Overview: Without admitting or denying the findings, IBN Financial Services consented to the sanctions and to the entry of FINRA findings that on several occasions, it conducted securities business while failing to maintain its required minimum net capital. FINRA said the firm had a net capital deficiency of approximately $27,480, and this deficiency was the result of the firm’s failure to accrue for a civil settlement and certain legal fees and expenses. In addition, on separate dates, the firm had a net capital deficiency, which resulted from the firm’s failure to timely accrue for commission expenses. As a result, the firm was censured and fined.
*Above are only some of the regulatory disciplinary actions filed against IBN Financial Services by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 3 BrokerCheck disclosures.
IBN Financial Services Customer Complaints
There have been scores of customer complaints filed against IBN Financial Services stockbrokers and investment advisors over the years. We have launched many investigations of current and former IBN Financial Services advisors:
- Kevin Meadows formerly with IBN Financial Services
- Peter Kalmus of IBN Financial Services, Inc.
- Richard Carlesco, Jr. of IBN Financial Services, Inc.
- Robert D’Agosta of IBN Financial Services, Inc.
- Robert Star of IBN Financial Services, Inc.
- Angelo Piccone of IBN Financial Services, Inc.
- James McArthur of Formerly With IBN Financial Services, Inc. Reviews
If you have lost money investing with any of these IBN Financial Services 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 IBN Financial Services Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many 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 IBN Financial Services 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. IBN Financial Services 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 IBN Financial Services 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 IBN Financial Services 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 IBN Financial Services 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.
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