Madison Avenue Securities, LLC (“Madison Avenue Securities“) (CRD#23224) 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 Madison Avenue 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 lost money with Madison Avenue Securities or one of its brokers, you have legal options to recover your losses. Many investors don’t realize that even if they signed an arbitration agreement with their brokerage firm, they can still pursue claims through FINRA arbitration—and win.
The firm’s pattern of supervisory failures and compliance violations has resulted in significant investor harm over the years. These documented regulatory problems may be directly connected to your investment losses, giving you grounds to file a claim for recovery.
Can I Sue Madison Avenue Securities?
YES, you can sue Madison Avenue 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 knows very well how you can not only sue Madison Avenue Securities in FINRA arbitration proceedings but WIN that arbitration.
How to Sue Madison Avenue Securities for Investment Losses
What Can I Do If I Lost Money at Madison Avenue Securities?
If you suffered losses at Madison Avenue Securities, you can file a FINRA arbitration claim to seek recovery of your investment losses. FINRA arbitration is the dispute resolution process used to resolve investor complaints against brokerage firms and their registered representatives when court litigation is not an option due to arbitration agreements.
The process works through the Financial Industry Regulatory Authority’s arbitration forum, where a panel of arbitrators reviews evidence and testimony from both sides before issuing a binding decision. This is not a court trial—it’s a more streamlined proceeding designed specifically for securities disputes, though it requires careful preparation and skilled representation to succeed.
Madison Avenue Securities has been cited for multiple supervisory failures including inadequate oversight of alternative investments, failure to supervise mutual fund sales charge discounts, conflicts of interest related to third-party compensation, and failure to supervise consolidated reports and private securities transactions. These documented regulatory problems may have directly contributed to your investment losses by allowing unsuitable recommendations, undisclosed conflicts of interest, or fraudulent practices to go undetected.
Even if you signed an arbitration agreement when you opened your account, you retain the right to pursue claims through FINRA arbitration. The Law Offices of Robert Wayne Pearce has extensive experience handling cases involving independent broker-dealers like Madison Avenue Securities, where lax supervisory practices and remote oversight create environments where broker misconduct can flourish.
Who Can Help Me Sue Madison Avenue Securities?
An experienced securities arbitration attorney can help you navigate the FINRA process and build a strong case against Madison Avenue Securities. The right attorney will understand the specific regulatory violations this firm has committed, know how to connect those failures to your individual losses, and have a proven track record of winning arbitration cases.
The Law Offices of Robert Wayne Pearce has handled hundreds of FINRA arbitration cases specifically involving independent broker-dealers and their supervisory failures. We understand how firms like Madison Avenue Securities operate, where their compliance weaknesses lie, and how to demonstrate that these failures caused investor harm.
What is Madison Avenue Securities?
Madison Avenue Securities (CRD#23224) 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, Madison Avenue 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.
Madison Avenue Securities In Trouble – Latest News
Yes, Madison Avenue Securities, LLC is experiencing ongoing problems. The firm continues to face regulatory issues and customer complaints throughout 2024 and 2025, demonstrating that its historical pattern of supervisory failures and compliance problems has not been resolved.
Most recently, in March 2025, broker Dimitry Tikhonov at Madison Avenue Securities received a customer complaint, showing that individual broker issues persist. Additionally, multiple FINRA arbitration cases and regulatory reviews have been ongoing through 2024 and into 2025, indicating the firm’s troubles are far from over.
Recent arbitration awards, including significant financial penalties, demonstrate that the firm’s supervisory problems continue to result in investor harm. The company’s current dealings remain subject to continued scrutiny from regulatory bodies and ongoing legal proceedings.
Why Does Madison Avenue Securities Have So Many Bad Reviews And Customer Complaints?
Independent broker-dealers like Madison Avenue Securities often struggle with supervision because their business model prioritizes rapid growth over investor protection. These firms operate on a franchise-type model, opening many offices nationwide to generate steady monthly revenues without the costs of full-service branch offices that have on-site managers, compliance officers, and operational personnel.
The registered representatives at independent broker-dealers typically run separately incorporated businesses and are not employees of the broker-dealer. This structure means they’re not controlled the same way as traditional brokerage firm representatives, and they often prioritize maximizing their own profits over protecting investors’ rights and interests.
Supervision at these firms relies on Offices of Supervisory Jurisdiction (OSJs) run by other independent contractors who monitor representatives from geographically remote offices. These OSJ supervisors aren’t full-time employees of the franchisor and often operate their own separate businesses, which means they cannot and do not supervise the day-to-day operations of the smaller branch offices.
This lax supervision creates significant risks for investors. There’s typically no immediate review of new accounts, securities transactions, business records, cash or securities movements, or correspondence. Without on-site oversight, there may be no one to detect forged signatures, inaccurate client information used to justify unsuitable investments, or misleading statements made to investors. Many of these offices receive only one compliance audit visit per year.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent brokerage firms than at traditional firms with on-site branch managers and compliance personnel. This pattern of abuse stems directly from the inadequate supervisory structure these firms employ.
Examples of Regulatory Problems and Complaints for Madison Avenue Securities
Madison Avenue Securities’ rapid growth has not been without consequences. There have been approximately 7 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 filed against Madison Avenue 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. Madison Avenue Securities is a repeat offender: there are over 7 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Complaints and Regulatory Problems Madison Avenue Securities Has Faced Over the Years*
Madison Avenue 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:
Texas State Securities Board Fines Madison Avenue Securities for Failure to Supervise Sales of Alternative Investments
Brief Overview: The Texas State Securities Board initiated an investigation into Madison Avenue Securities that revealed the firm failed to establish, maintain, and enforce a supervisory system to supervise the activities of its agents relating to the sale of certain alternative investments.
FINRA specifically said after adopting different branch office guidelines for one form agent, the firm did not consistently apply an alternative investment account score worksheet, which was used to assess compliance for purchases of alternative investment sales. The firm also failed to create a new tool to monitor for the branch-office specific compliance of alternative investment sales. Texas ordered that the firm pay an administrative fine. The firm was also ordered to comply with the terms of an undertaking with the Board.
FINRA Censures and Fines Madison Avenue Securities for Failure to Supervise Mutual Fund Transactions for Sales Charge Discounts
Brief Overview: Without admitting or denying the findings, Madison Avenue Securities 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 supervise mutual fund transactions that the firm’s representatives effected through its electronic order entry system to confirm the suitability of the transactions regarding potential available sales charge discounts.
FINRA said the firm used a process where firm principals manually reviewed mutual fund transactions submitted through the electronic order entry system the day after the transaction. The firm used an electronic trade monitoring program for the firm’s suitability review of transactions entered into the electronic order entry system, along with a principal’s review of the trade monitoring program’s surveillance alerts. Neither the manual review nor surveillance alert review process allowed for reasonable review of the suitability of customers’ purchases of mutual funds in multiple different mutual fund families resulting in missed sales charge discounts. As a result, the firm was censured and fined $50,000.
SEC Censures and Fines Madison Avenue Securities for Conflicts of Interest Related to Third-Party Compensation Based on Advisory Clients
Brief Overview: The Securities and Exchange Commission initiated an investigation into Madison Avenue Securities that revealed breaches of fiduciary duty in connection with its receipt of third-party compensation based on advisory client investments. According to the SEC, the firm failed to provide full and fair disclosure regarding conflicts of interest associated with its receipt of revenue sharing payments from its unaffiliated clearing broker because of sweeping cash into certain money market mutual funds; fees pursuant to rule 12b-1 under the Investment Company Act of 1940; and revenue sharing payments from its clearing broker for no-transaction fee mutual fund investments.
The SEC also said the firm failed to adopt and implement written compliance policies and procedures reasonably designed to prevent violations of the Advisers Act and the rules thereunder in connection with its practices concerning cash sweep revenue sharing, mutual fund and money market fund share class selection, and no-transaction fee revenue sharing. As a result, the firm was censured and fined $175,000.
FINRA Censures and Fines the Madison Avenue Securities for Failure to Supervise Dissemination of Consolidated Reports to Customers
Brief Overview: Without admitting or denying the findings, Madison Avenue Securities consented to the sanctions and to the entry of FINRA findings that it failed to have either written procedures or a supervisory system in place pertaining to the creation and dissemination of consolidated reports. The firm distributed approximately 6,800 consolidated reports to customers, and approximately 4,500 of those consolidated reports were generated using templates that allowed for manual entries.
Even though most of the consolidated reports contained adequate disclosure, the templates used by 7 representatives did not. The procedures in place relating to consolidated reports that required representatives to submit templates to the compliance department prior to use and provided for the review of consolidated reports were not consistently enforced and were inadequate, said the SEC. Indeed, thousands of consolidated reports were neither reviewed nor retained by the firm. As a result, the firm was censured and fined $75,000.
FINRA Censures and Fines Madison Avenue Securities for Failure to Supervise Registered Representatives Private Securities Transactions
Brief Overview: Without admitting or denying the findings, Madison Avenue Securities consented to the described sanctions and to the entry of FINRA findings that a registered representative of the firm participated in private securities transactions when participating in the offer and sale of private placement offerings. FINRA said at the time the representative became registered with the firm, he provided written notification to the firm that he was the owner and manager of an entity, which was engaged in a private offering of securities that he participated in selling, and that he intended to form another entity and commence a related private offering.
The representative also told the firm that he acted as the portfolio manager with respect to funds raised in the offerings and had an opportunity to profit from the portfolio transactions at the conclusion of the investment period. The firm acknowledged the representative’s association with the issuers of the private placement offerings as an outside business activity but failed to record the transactions in its books and records and failed to supervise his conduct. As a result, the firm was censured and fined.
*Above are only some of the regulatory disciplinary actions filed against Madison Avenue 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 Madison Avenue Securities or one of its brokers with FINRA
If you’ve suffered financial losses because of misconduct by Madison Avenue Securities or one of its brokers, you are not alone. Madison Avenue Securities, LLC (CRD# 23224) has a long history of regulatory problems, investor complaints, and disciplinary actions by the Financial Industry Regulatory Authority (FINRA), the SEC, and state regulators.
Many of these cases involve supervisory failures, unsuitable investment recommendations, and breaches of fiduciary duty that have left investors with significant losses.
At the Law Offices of Robert Wayne Pearce, P.A., we have been investigating Madison Avenue Securities and representing wronged investors for decades. Filing a FINRA complaint against Madison Avenue Securities can be a powerful first step toward holding the firm accountable—but navigating the process without skilled legal guidance often leads to denials or delays.
Our firm understands the complexity of FINRA complaints and arbitration, and we are committed to helping investors like you pursue justice and recover the compensation you deserve.
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 Madison Avenue Securities without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Madison Avenue Securities
Our firm provides comprehensive representation throughout the entire FINRA arbitration process from initial complaint filing to final award. We thoroughly investigate your case, gather evidence of supervisory failures and broker misconduct, prepare compelling legal arguments, and present your case effectively before the arbitration panel.
With over 45 years of experience in securities arbitration and a proven track record of recovering more than $175 million for investors, Attorney Robert Wayne Pearce knows exactly how to build winning cases against firms like Madison Avenue Securities. We understand the specific regulatory violations this firm has committed and how to connect those failures to your individual losses.
Attorney Pearce offers free consultations to evaluate your case and explain your legal options. Don’t navigate this complex process alone—let our experience work for you.
Consult With An Attorney Who Recovers Investment Losses Caused By Madison Avenue Securities Today
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last several decades to recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Madison Avenue Securities cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Don’t let a fraudulent brokerage get away with your hard-earned money. The Law Offices of Robert Wayne Pearce proudly assists investors in California, North Carolina, South Carolina, and throughout the U.S.
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.
