Prospera Financial Services, Inc. (“Prospera Financial”) (CRD# 10740) has numerous complaints filed by FINRA, state regulatory organizations, and investors. If you’ve suffered losses due to investment fraud, negligence, or breach of fiduciary duty at Prospera Financial, you may be entitled to recover your losses through FINRA arbitration.
The Law Offices of Robert Wayne Pearce has investigated Prospera Financial’s regulatory violations and customer complaints. Many investors don’t realize they can pursue claims against Prospera Financial even if they signed arbitration agreements. FINRA arbitration provides a viable path to recover investment losses caused by broker misconduct.
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 determine your legal options.
Can I Sue Prospera Financial Services, Inc.?
If you’ve lost money caused by Prospera Financial and/or its employees’ misconduct then the answer is, YES, you can sue Prospera Financial 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 45 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Prospera Financial in FINRA arbitration proceedings, but WIN that arbitration.
How to Sue Prospera Financial Services, Inc. for Investment Losses
What Can I Do If I Lost Money at Prospera Financial Services, Inc.?
If you lost money at Prospera Financial, you can file a claim through FINRA arbitration to recover your losses. FINRA arbitration is a legal process specifically designed for investment disputes between investors and brokerage firms. Unlike traditional court proceedings, arbitration is typically faster and more cost-effective.
The documented regulatory violations at Prospera Financial—including inadequate supervisory procedures, research analyst violations, and misrepresentations to advisory clients—indicate systemic problems that may have directly impacted your investments. These supervisory failures often lead to unsuitable investment recommendations, unauthorized trading, or misrepresentation of investment risks.
Even if you signed an arbitration agreement when opening your account, you still have the right to pursue your claim. The arbitration clause doesn’t prevent you from seeking compensation—it simply means your case will be heard in a FINRA arbitration forum rather than in court. Many investors successfully recover losses through this process.
Who Can Help Me Sue Prospera Financial Services, Inc.?
An experienced securities attorney who understands FINRA arbitration procedures and Prospera Financial’s specific compliance failures can help you navigate the claims process. The Law Offices of Robert Wayne Pearce specializes in cases involving independent broker-dealers like Prospera Financial and has extensive experience with the types of supervisory failures and misconduct common at these firms.
The firm can evaluate whether the losses in your account resulted from broker negligence, unsuitable recommendations, failure to supervise, or other violations of securities laws. Early consultation with an attorney is critical because FINRA arbitration has strict time limits for filing claims.
What is Prospera Financial Services, Inc.?
Prospera Financial (CRD# 10740) has been registered with the SEC and FINRA as a broker dealer since 1982. The company is controlled by the Prospera Holdings, LLC and headquartered in Dallas, Texas with small branch offices located throughout the United States operating under different names:
ACM WEALTH MANAGEMENT LOLLIS FINANCIAL ADVISORS, LLC
AMARILLO SECURITIES LUNDY FINANCIAL SERVICES
ARK FINANCIAL MANAGEMENT, LLC LYNN WEALTH MANAGEMENT
ASCENDANT FINANCIAL ADVISORS MAGELLAN WEALTH ADVISORS
BACKE PAGE GROUP MCGUIRE-DYKE INVESTMENT GROUP
BARNETT FINANCIAL PARTNERS, INC MCMAHAN FINANCIAL, LLC
BARRIGER & CO, INC. MONEY MATTERS 911
BECKER SUFFERN MCLANAHAN, LTD MOSSAKOWSKI & NICHOLS WEALTH MGMT, LLC
BEDNARZ FINANCIAL OAKES WEALTH MANAGEMENT
BENNETT JENSEN GROUP OSSOLA WEALTH MANAGEMENT
BENTLEY & COMPANY INVESTMENTS PARKLANE FINANCIAL ADVISORS, LLC
BLANCHARD FINANCIAL SERVICES PRICE PERKINS LLC
BOTEL ASSET MANAGEMENT PROSPERA FINANCIAL NY
BULLINGER WEALTH MANAGEMENT PROSPERA FINANCIAL SERVICES
C E GAVE & SONS SECURITIES, LTD PROVIDENT STRATEGIES GROUP
CAPTRUST FINANCIAL ADVISORS PSE WEALTH MANAGEMENT
CASCADE WEALTH MANAGEMENT PYLE FINANCIAL SERVICES
CECILCO REAGAN CONSULTING, LLC
CHAPMAN WEALTH MANAGEMENT REAGAN HOLLOWAY
CHARNEY INVESTMENT GROUP REDWOOD ADVISORY GROUP
CORDATUS WEALTH MANAGEMENT, LLC REED WEALTH MANAGEMENT
DANIAS FINANCIAL MANAGEMENT RICK WHITEHURST ASSET MANAGEMENT
DAY WEALTH MANAGEMENT RIVERSTONE FINANCIAL GROUP
DOMINION CAPITAL PARTNERS WEALTH MGMT ROBERT JAMES INVESTMENTS
ENDURANCE WEALTH PARTNERS SABELHAUS WEALTH PARTNERS
ERIKSEN FINANCIAL, INC SCATOLINI WEALTH MANAGEMENT
FIDUCIARY 401 (K) SIERRA PACIFIC WEALTH MANAGEMENT
FOREMAN FINANCIAL GROUP SILVA FINANCIAL GROUP
FULCRUM WEALTH PLANNING SILVER CREEK FINANCIAL GROUP, LLC
GODLEY WEALTH MANAGEMENT SILVERTHORN INVESTMENTS
GOFF WEALTH MANAGEMENT, LLC SOURCE ROCK CAPITAL MANAGEMENT
HARTMAN INVESTMENT GROUP, LLC SOUTHERN INVESTMENT PARTNERS
HEIDTKE & CO, INC. SPEICHER FINANCIAL GROUP
HUDDLESTON SMITH WEALTH MANAGEMENT SUMMIT INVESTMENTS
JAMESTOWNE INVESTMENTS, LLC TAYLOR & ASSOCIATES, LLC
JEFF POOSCH FINANCIAL SERVICES TCA FINANCIAL GROUP, LLC
JOHNSON WEALTH MANAGEMENT TESTA & ASSOCIATES LLC
JRS WEALTH MANAGEMENT THE FINANCIAL MAESTRO, LLC
KAPLAN WEALTH ADVISORS WAITS FINANCIAL GROUP
KATZ FINANCIAL WATERS FINANCIAL GROUP
KUTZEN FINANCIAL WATSON WEALTH MANAGEMENT
LEVEL WEALTH MANAGEMENT WESTON BANKS WEALTH PARTNERS
LITTLE & ASSOCIATES WEALTH MGMT WILLIAMSON WEALTH ADVISORS
LIVEOAK WEALTH ADVISORS, LLC WILSON CRONE
WT WEALTH MANAGEMENT LLC
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 85 Prospera Financial branch offices with over 165 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 Prospera Financial Services, Inc. Have So Many Bad Reviews and Customer Complaints?
Prospera Financial’s business model creates significant supervision challenges that often lead to customer complaints. The firm operates as a franchise-style organization with registered representatives working from small offices across the country. These representatives aren’t employees—they’re independent contractors running their own businesses.
This structure means there’s typically no one physically present in branch offices to monitor day-to-day operations. Supervisors work remotely from other locations and can’t observe what’s happening in real-time. As a result, problematic activities like unsuitable recommendations, unauthorized trades, or misleading statements to clients can go undetected for extended periods.
The supervisory system uses what are called Offices of Supervisory Jurisdiction (OSJs). However, OSJ managers are also independent contractors running their own businesses—they’re not full-time supervisors dedicated solely to oversight. This divided attention makes it difficult to catch problems before investors suffer losses.
Without immediate review of new accounts, transactions, correspondence, and other business activities, investors at independent broker-dealers like Prospera Financial face higher risks. The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at these firms compared to traditional brokerage firms with on-site managers and compliance personnel.
Prospera Financial Services, Inc. Has Many Different Regulatory Problems
Prospera Financial’s rapid growth has not been without consequences. There have been approximately 10 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 Prospera 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. Prospera Financial is a repeat offender: there are at least 6 FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses or another in the last decade.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS PROSPERA FINANCIAL SERVICES HAS FACED OVER THE YEARS
Prospera Financial has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A couple of the more notable FINRA Sanctions for its supervisory failures are below:
FINRA Sanctions Prospera Financial For Research Analyst
FINRA investigated Prospera Financial and discovered multiple violations of NASD research report, research analyst and advertising provisions and SEC regulations by Prospera Financial and one of its research analysts, in connection with research reports and sales literature distributed by Prospera Financial. The brokerage firm, acting through its chief compliance officer, also had inadequate supervisory procedures regarding research reports and failed to properly supervise the research analyst’s activities. As a result, FINRA censured the brokerage firm and imposed a fine of $30,000 in addition to its sanctions imposed upon the research analysts and its supervisory personnel.
SEC Sanctions Prospera Financial For Investment Advisors Act Violations
The SEC investigated Prospera Financial and found the investment adviser, to have made misstatements to its advisory clients, including clients with separately managed accounts invested in F-Squared Investments, Inc.’s (“F-Squared”) strategy. Prospera Financial advertised the strategy by negligently relying on F-Squared’s materially inflated, and hypothetical and back-tested, performance track record that F-Squared misrepresented. The SEC, from this misconduct, determined that Prospera Financial violated Section 206(4) of the Advisers Act and Rule 206(4)-1(a)(5) thereunder by publishing, circulating, and distributing advertisements that contained untrue statements of material fact. Prospera Financial likewise did not make and keep true, accurate and current records or documents necessary to form the basis for or demonstrate the calculation of the performance or rate of returns that it circulated and distributed, as required by Section 204(a) of the Advisers Act and Rule 204-2(a)(16) thereunder. As a result, the SEC ordered Prospera Financial to cease-and-desist from further violations of the Advisors Act and ordered it to pay $100,000 to the SEC as a civil monetary penalty.
*Above are only a couple of the regulatory disciplinary actions filed against Prospera Financial by FINRA. There are at least 8 more SEC, FINRA, NASSA, and/or state securities regulator investigations and enforcement actions reported on BrokerCheck as regulatory disciplinary proceeding disclosures.
Did Prospera 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. Prospera 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 Prospera Financial without representation with an attorney about their complaints and have their complaints denied.
Consult With An Attorney Who Recovers Investment Losses Caused By Prospera Financial Services, Inc. Today
The securities 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 Prospera Financial 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.
