Prospera Financial Services, Inc. (“Prospera Financial”) (CRD# 10740) 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 Prospera Financial, 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 believe you have a claim against Prospera Financial, you should strongly consider hiring an investment loss 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 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 40 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. The easiest way to know if you have a viable case against Prospera Financial is to call Attorney Pearce at our office at 800-732-2889.
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 MANAGEMENT, 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 MANAGEMENT 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 MANAGEMENT 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.
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.
Prospera Financial Services Customer Complaints
There have been many complaints filed against Prospera Financial stockbrokers and investment advisors over the years. We have launched a number of investigations of current and former Prospera Financial advisors, including:
If you have lost money investing with these Prospera Financial 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 Prospera Financial Services, Inc. Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these 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 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 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 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.