Sigma Financial Corporation (CRD# 14303) has accumulated numerous complaints filed by FINRA, state regulatory organizations, and investors. If you’ve suffered investment losses due to Sigma Financial or one of its financial advisors, you have legal options to recover your money. The firm has faced repeated regulatory sanctions for supervisory failures, creating a pattern that may have directly affected your investments.
Investors who lost money with Sigma Financial can pursue claims through FINRA arbitration—a process specifically designed to resolve disputes between investors and brokerage firms. Because most brokerage agreements include arbitration clauses, this is typically the path to recovering your losses rather than filing a lawsuit in court. You should not wait until it’s too late to file a claim.
At the Law Offices of Robert Wayne Pearce, P.A., we have investigated Sigma Financial, analyzed its regulatory and customer complaints, and represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors. Free consultations are available to evaluate your potential claim.
Can I Sue Sigma Financial Corporation?
If you’ve lost money caused by Sigma Financial and/or its employees’ misconduct then the answer is, YES, you can sue Sigma 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 extensive personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Sigma Financial in FINRA arbitration proceedings, but WIN that arbitration.
How to Sue Sigma Financial Corporation for Investment Losses
What Can I Do If I Lost Money at Sigma Financial?
If you lost money at Sigma Financial, you can file a claim through FINRA arbitration to seek compensation for your losses. FINRA arbitration is a streamlined legal process where a neutral panel reviews your case and decides whether the brokerage firm owes you damages. This process exists because most brokerage account agreements require disputes to be resolved through arbitration rather than court litigation.
The regulatory problems documented against Sigma Financial—including failures to supervise representatives, ETF sales abuses, and UIT sales misconduct—may directly relate to how your account was handled. When a firm fails to properly oversee its advisors, unsuitable investments, excessive trading, and outright fraud become more likely to occur without detection. These documented supervisory lapses can serve as powerful evidence supporting your claim.
Even if you signed an arbitration agreement with Sigma Financial, you still have the right to pursue your claim. The arbitration clause simply determines where your case will be heard—not whether you can seek justice. Investors who act promptly often have stronger cases because evidence remains fresh and statute of limitations concerns are avoided.
Who Can Help Me Sue Sigma Financial?
A securities attorney experienced in FINRA arbitration can help you sue Sigma Financial and pursue the full compensation you deserve. The Law Offices of Robert Wayne Pearce, P.A. has handled numerous cases against Sigma Financial and understands the specific regulatory issues and supervisory failures that have plagued this firm. Our experience with these particular types of cases means we know how to build a compelling argument based on documented violations and connect them to your specific losses.
What is Sigma Financial Corporation?
Sigma Financial (CRD# 14303) has been registered with the SEC and FINRA since 1983. The company headquartered in Ann Arbor, Michigan with smaller branch offices located throughout the United States. 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 390 Sigma Financial branch offices with over 650 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 Sigma Financial Corporation Have So Many Bad Reviews and Customer Complaints?
Sigma Financial’s business model creates conditions where investor protection often falls short. As an independent broker-dealer, the firm operates through hundreds of small, scattered offices where financial advisors work as independent contractors rather than employees. This structure means there’s typically no on-site manager watching day-to-day activities.
Supervision happens remotely through regional offices called Offices of Supervisory Jurisdiction (OSJs). These supervisors often run their own businesses on the side and cannot realistically monitor every transaction, every new account, or every piece of client correspondence happening across dozens of remote locations. Without immediate oversight, problems like forged signatures, unsuitable investment recommendations, and misleading sales pitches can go undetected for months or even years.
The North American Securities Administrators Association (NASAA) has documented that this type of franchise-style brokerage operation produces more instances of sales abuse and investor losses than traditional firms with on-site compliance staff. When profit-driven advisors operate with minimal supervision, investor protection becomes their lowest priority.
Sigma Financial Corporation Has Many Different Regulatory Problems
Sigma Financial’s rapid growth has not been without consequences. There have been approximately 15 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 Sigma 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. Sigma Financial is a repeat offender: there are over 8 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 SIGMA FINANCIAL CORPORATION HAS FACED OVER THE YEARS*
Sigma Financial has been repeatedly censured, warned, and fined over $1 million 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:
FINRA Sanctions Sigma Financial For ETF Sales Abuses
FINRA investigated and discovered that Sigma Financial failed to establish, maintain, and enforce a supervisory system and written supervisory procedures reasonably designed to achieve compliance with securities laws, regulations, and FINRA Rules applicable to the sales of leveraged, inverse, and inverse-leveraged exchange-traded funds (“Non-Traditional ETFs”). As a result, FINRA concluded that Sigma Financial violated FINRA Rules 3110 and 2010 and NASD Rule 3010. These violations were aggravated by the fact that Sigma Financial represented to FINRA that it would implement specific corrective measures to cure these deficiencies, but failed to implement the measures in the time-frame anticipated by FINRA based on Sigma Financial’s representations. Notwithstanding the fact it ignored its obligations, FINRA only censured and fined the firm $100,000.
FINRA Sanctions Sigma Financial For UIT Sales Abuse
FINRA investigated and discovered Sigma Financial failed to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010. In addition, Sigma Financial 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 in violation of NASD Rule 3010 and FINRA Rule 2010 for which it was censured and fined $100,000.
FINRA Sanctions Sigma Financial For Supervisory Deficiencies
FINRA investigated and determined certain supervisory deficiencies existed at Sigma Financial. The deficiencies existed in specific areas of Sigma’s supervisory systems and procedures, its supervision of registered representatives, the firm’s suitability processes and procedures, some of its implemented, procedures relating to customer information, and also concerning branch office registration for purposes of trade execution.
NASD Rule 3010 requires that FINRA member firms establish and maintain a system of supervision that is reasonably designed to achieve compliance with securities laws, regulations and pertinent rules. As part of this system, firms must also create and implement written supervisory procedures (“WSPs”) that address their business and activities. Moreover, firms have a responsibility under Rule 3010 to conduct inspections where such business takes place and review the correspondence of their representatives.
As a result of these deficiencies, FINRA concluded Sigma Financial violated NASD Rules 3010(a)-(d) and FINRA Rule 2010, and censured and fined the broker-dealer $185,000.
FINRA Sanctions Sigma Financial For Paying Commissions To Unlicensed Persons
FINRA investigated and found during the relevant period, Sigma Financial paid transaction based compensation to non-registered DBA entities owned by certain of its registered representatives when compensating them for securities transactions they effected. Specifically, FINRA found that Sigma Financial paid transaction based compensation totaling $11,406,377 to 101 nonregistered DBA entities for over 2 years. Sigma financial should have been paying compensation, commissions, concessions or fees directly to the registered representatives who effected the transactions. NASD Rule 2420 prohibits FINRA members from granting to nonmembers any selling concession in connection with any securities transaction. As a result of the foregoing activities, FINRA concluded that Sigma Financial violated Rule 2420 and FINRA Rule 2010 for which it was censured and fined only $15,000.
FINRA Sanctions Sigma Financial For TIC Sales Misconduct
FINRA investigated and found that Sigma Financial allowed another company to offer and sell investments in tenancy-in-common, the multi-tenant NNN leases and multi-family communities. The company advertised this offering and the Wall Street Journal and elsewhere. Sigma Financial sent mailers and distributed fliers announcing complementary workshops to explore potentially greater cash-on-cash returns with real property investments through 1031 exchanges and TIC co-ownership of real estate. In addition to the advertisements, Sigma Financial maintained a website describing the same real estate investment offerings. FINRA found that Sigma Financial offered and sold 8400 membership units private placement, offered and sold undivided co-ownership real estate investment interests, TIC interests in two other real estate properties which were general solicitations disqualifying the company from any securities registration exemption. FINRA found that the offer and sale of those securities by Sigma Financial violated Section 5 of the Securities Act of 1933, and that it failed to supervise its registered representatives to prevent violation of SEC and NASD rules. As a result, FINRA concluded that such acts, practices and conduct also constituted separate and distinct violations of NASD Conduct Rules 2110 and 3010 by the member firm and imposed a censure and fine of $20,000.
*Above are only some of the regulatory disciplinary actions filed against Sigma Financial by FINRA. There are at least 10 more FINRA, NASSA and other state securities regulator investigations and enforcement actions reported as BrokerCheck disciplinary proceeding disclosures.
Did Sigma Financial Corporation 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. Sigma 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 Sigma Financial without representation with an attorney about their complaints and have their complaints denied.
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 Sigma Financial Corporation 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 recovered more than $175 million on behalf of defrauded investors. The firm has extensive experience with Sigma 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.
