Infinex Investments, Inc. (“Infinex Investments“) (CRD#35371) 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 Infinex Investments and its regulatory history, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against organizations such as Infinex Investments.
If you’ve lost money at Infinex Investments due to broker misconduct, fraud, or unsuitable investment recommendations, you have legal options to recover your losses. Most investors will pursue their claims through FINRA arbitration rather than court, as brokerage agreements typically include arbitration clauses. The good news is that arbitration can be just as effective—and often faster—than traditional litigation for recovering investment losses.
If you believe you have a claim against Infinex Investments, 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 to discuss your case and evaluate your legal options.
Can I Sue Infinex Investments?
Yes, you can sue Infinex Investments if you’ve lost money caused by Infinex Investments and/or its employees’ misconduct, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. FINRA arbitration is a forum specifically designed to resolve disputes between investors and brokerage firms, and it can be just as effective as court litigation for recovering your losses. The Law Offices of Robert Wayne Pearce has extensive experience in FINRA arbitration proceedings and knows very well how you can not only sue Infinex Investments in FINRA arbitration but WIN that arbitration.
How to Sue Infinex Investments for Investment Losses
Understanding how to pursue claims against Infinex Investments is crucial for investors who have suffered losses. The process typically begins with filing a Statement of Claim with FINRA, which outlines your allegations and the damages you’ve suffered. This initiates the arbitration process, which functions similarly to a court trial but is generally faster and less formal.
What Can I Do If I Lost Money at Infinex Investments?
If you lost money at Infinex Investments, your first step should be to document all your losses and gather evidence of misconduct. This includes account statements, trade confirmations, correspondence with your broker, and any promotional materials you received. Look for patterns that match Infinex Investments’ documented regulatory violations: were you charged excessive sales charges on UITs or mutual funds? Were you sold non-traditional ETFs without proper disclosure of their risks? Did your broker recommend unsuitable investments based on misleading information about your financial situation?
The regulatory history of Infinex Investments reveals a pattern of supervisory failures that have led to investor harm. The firm has been sanctioned multiple times by FINRA and the SEC for failures including: inadequate supervision of mutual fund share class selection (resulting in clients paying higher fees), failure to apply sales charge discounts on UIT purchases (costing customers approximately $109,628), and inadequate due diligence on non-traditional ETFs sold to customers. These violations demonstrate systemic problems in how the firm operates and supervises its representatives.
Even if you signed an arbitration agreement when opening your account—which most investors do—you can still pursue your claims effectively through FINRA arbitration. FINRA arbitration provides investors with a fair forum to present their case before neutral arbitrators who understand securities law. The process allows for discovery of evidence, presentation of witnesses, and the opportunity to recover damages including lost principal, lost profits, and in some cases, punitive damages.
Who Can Help Me Sue Infinex Investments?
An experienced securities arbitration attorney can guide you through every step of the process, from evaluating the strength of your case to presenting evidence at the arbitration hearing. The Law Offices of Robert Wayne Pearce focuses specifically on these types of cases and has handled numerous claims against independent broker-dealers like Infinex Investments. We understand the specific supervisory failures that plague firms like Infinex and know how to connect documented regulatory violations to individual investor losses. Our firm can help you navigate the complexities of FINRA arbitration and fight for the compensation you deserve.
What is Infinex Investments?
Infinex Investments (CRD#35371) 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, Infinex Investments 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 Infinex Investments Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Infinex Investments often face more customer complaints than traditional brokerage firms because of how they’re structured and supervised. Unlike traditional firms with branch offices staffed by full-time managers and compliance officers, independent broker-dealers use a franchise-style model that creates gaps in oversight.
In this business model, financial advisors operate as independent contractors rather than employees. They run their own separately incorporated businesses and aren’t controlled the same way traditional firm employees are. The firm relies on remote supervisors at Offices of Supervisory Jurisdiction (OSJs) to monitor these advisors, but these OSJ managers are also independent contractors running their own businesses—they’re not dedicated full-time supervisors.
This creates serious supervision problems. There’s typically no immediate review of new accounts opened, securities transactions, business records, or client correspondence. New investments may not be reviewed or authorized by anyone except the sales representative earning a commission. Warning signs like forged signatures, inaccurate information about clients’ financial situations, or misleading sales materials often go undetected because there’s no one on-site watching for these red flags on a daily basis.
The North American Securities Administrators Association (NASAA) has documented that these independent brokerage operations experience more instances of sales abuse and investor losses compared to traditional brokerage firms with on-site managers and compliance staff. When supervision is lax and profit incentives are high, investors become vulnerable to unsuitable recommendations and fraud.
Infinex Investments Has Many Different Regulatory Problems
Infinex Investments’ 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 Infinex Investments 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. Infinex Investments 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 Infinex Investments Has Faced Over the Years*
Infinex Investments 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:
SEC Censures Infinex Investments for Mutual Fund Shares Sales Practice
Brief Overview: The Securities and Exchange Commission initiated an investigation into Infinex Investments that revealed breaches of fiduciary duty and inadequate disclosures by the firm in connection with its mutual fund share class selection practices and the fees it received. According to the SEC, the firm purchased, recommended, or held for advisory clients mutual fund share classes that charged 12b-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible. The firm received 12b-1 fees in connection with these investments but failed to disclose in its Form ADV or otherwise the conflicts of interest related to its receipt of 12b-1 fees and/or its selection of mutual fund share classes that pay such fees, which the form received for advising clients to invest in or hold such mutual fund share classes. As a result, the firm was censured and paid disgorgement of over $800,000 plus interest.
FINRA Censures and Fines Infinex Investments for Excessive Sales Charges on UIT Purchases by Customers
Brief Overview: Without admitting or denying the findings, Infinex Investments consented to the sanctions and to the entry of FINRA findings that it failed to identify and apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts resulting in customers paying excessive sales charges of approximately $109,628. FINRA also stated that the firm failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that customers received sales charge discounts on all eligible UIT purchases. Indeed, the firm relied primarily on its registered representatives to ensure that customers received appropriate UIT sales charge discounts, despite the fact that the firm did not effectively inform and train representatives and their supervisors to identify and apply such sales charge discounts. As a result, the firm was censured and fined $175,000.
FINRA Censures and Fines Infinex Investments for Failure to Perform Adequate Due Diligence on Non-Traditional ETFs Sold to Customers
Brief Overview: Without admitting or denying the findings, Infinex Investments consented to the sanctions and to the entry of FINRA findings that it failed to subject non-traditional exchange-traded funds to the same level of review as other new products offered for sale to retail brokerage customers. FINRA said instead, the firm allowed its registered representatives to recommend to customers non-traditional ETFs without performing reasonable diligence to understand the risks and features associated with it. According to FINRA, firm representatives who received minimal training on non-traditional ETFs failed to perform reasonable diligence to understand the risks and features of the product, to recommend to customers transactions in nontraditional ETFs. FINRA further said the firm’s supervisory system was inadequate to detect and monitor the holding periods of non-traditional ETFs in customer accounts. Specifically, the firm did not utilize exception reports or other surveillance reports to monitor ETF activity, including the classification of ETFs as leveraged or inverse. As a result, the firm was censured and fined $75,000.
FINRA Censures and Fines Infinex Investments for Violating Rules Regulating Order Tickets
Brief Overview: Without admitting or denying the findings, Infinex Investments consented to the described sanctions and to the entry of FINRA findings the firm failed to maintain adequate order tickets. Moreover, the firm failed to maintain its corporate and municipal bond order ticket information in an easily accessible place for a period of two years, as required by Exchange Act and MSRB Rules. In addition, the firm failed to establish and maintain a supervisory system, and establish, maintain, and enforce written supervisory procedures reasonably designed to achieve compliance with corporate and municipal bond order ticket recordkeeping and retention requirements. As a result, the firm was censured and fined.
State of Illinois Fines Infinex Investments for Acting as a Dealer without Being Properly Registered in the State
Brief Overview: The State of Illinois initiated an investigation into Infinex Investments that revealed the firm acted as a dealer in the State of Illinois without being properly registered in violation of Illinois securities law. This made the firm’s application for registration as a dealer in the State of Illinois subject to denial. Infinex Investments entered into a consent order with the state and also paid a fine.
*Above are only some of the regulatory disciplinary actions filed against Infinex Investments by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 3 BrokerCheck disclosures.
How to File an Official Complaint Against Infinex Investments or One of Its Brokers with FINRA
If you believe you’ve been a victim of broker misconduct at Infinex Investments, filing a complaint with FINRA is an important step. You can submit a complaint directly through FINRA’s online complaint center or by calling their helpline. When filing your complaint, include detailed information about the misconduct, supporting documentation such as account statements and trade confirmations, and a clear description of the losses you’ve suffered.
However, filing a complaint with FINRA is different from pursuing arbitration to recover your losses. A complaint alerts regulators to potential misconduct and may trigger an investigation, but it doesn’t directly compensate you for your financial losses. To actually recover money, you’ll need to file a Statement of Claim in FINRA arbitration, which initiates a legal proceeding against the firm and/or broker.
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Infinex Investments
Navigating the FINRA arbitration process alone can be overwhelming, especially when facing a well-funded brokerage firm with experienced legal counsel. The Law Offices of Robert Wayne Pearce specializes in helping investors recover losses through FINRA arbitration and has extensive experience with cases involving independent broker-dealers like Infinex Investments.
Our firm will evaluate your case during a free consultation to determine if you have viable claims. We’ll review your account history, analyze trading patterns, identify specific violations of securities regulations, and calculate your damages. If we take your case, we handle every aspect of the arbitration process: preparing and filing the Statement of Claim, conducting discovery to gather evidence, preparing witnesses, and presenting your case before the arbitration panel.
Because Infinex Investments has a documented history of supervisory failures and regulatory violations, we know exactly where to look for evidence of misconduct that may have affected your account. Whether you were charged excessive fees, sold unsuitable investments, or fell victim to fraud, we have the knowledge and experience to build a strong case on your behalf and fight for maximum recovery of your losses.
Did Infinex Investments 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. Infinex Investments 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 Infinex Investments 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 Infinex Investments 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 Infinex Investments cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
At the Law Offices of Robert Wayne Pearce, we strive to recover losses caused by unethical brokerages. We serve clients across the nation, including Connecticut, Florida, and North Carolina.
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.
