Update 4/7/2020: According to reports, the Securities and Exchange Commission charged Cetera Advisors with breaching its fiduciary duty and defrauding its retail advisory clients in connection with the sales of mutual funds. The SEC alleged that the firm failed to disclose conflicts of interest related to its receipt of undisclosed compensation. According to the SEC’s complaint, from at least September 2012 through December 2016, Cetera Advisors sold clients mutual fund share classes that charged 12b-1 fees even when it knew the clients were eligible to invest in lower-cost shares of the same funds. The complaint seeks a permanent injunction, disgorgement of ill-gotten gains plus prejudgment interest, and a penalty. Finally, the SEC alleges that Cetera Advisors generated over $10 million in undisclosed compensation as a result of these mutual fund charges.
Update 8/30/19: The Securities and Exchange Commission has charged Cetera Advisors LLC, a registered investment adviser and broker-dealer based in Denver, Colorado, with breaching its fiduciary duty and defrauding its retail advisory clients by failing to disclose conflicts of interest related to its receipt of more than $10 million in undisclosed compensation.
Update 11/2/16: FINRA fined eight firms, including Cetera Advisors, a total of $6.2 million and ordered five of them to pay another $6.3 million in restitution for failing to supervise the sales of variable annuities. In addition to the unsuitable investment violation, FINRA also found that Cetera Advisors did not monitor rates of variable annuity exchanges. The variable annuities under scrutiny were L-share annuities that are considered “potentially incompatible, complex and expensive long-term minimum-income and withdrawal riders.” According to FINRA, L-share annuities could “pay greater compensation to the firms and registered representatives than more traditional share classes.
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Cetera Advisors. If you suffered losses investing with Cetera Advisors, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
Cetera Advisors (CRD# 10299) (SEC# 801-33020, 8-26892)
As of April 4, 2020, Cetera Advisors’s FINRA BrokerCheck Report contains the following:
11 Regulatory Event Disclosures
1 Civil Event Disclosures
7 Arbitration Disclosures
Main Office Location
4600 SOUTH SYRACUSE STREET
DENVER, CO 80237
4600 SOUTH SYRACUSE STREET
DENVER, CO 80237
Business Telephone Number
Direct Owners and Executive Officers
CETERA FINANCIAL GROUP, INC., SOLE MEMBER
BONNEAU, CATHERINE MCCORMACK (CRD#:2899706), CHIEF OPERATING OFFICER
BOWMAN, TIMOTHY JOSEPH (CRD#:2247374), PRINCIPAL FINANCIAL OFFICER
HALEY, KRISTY MARIE (CRD#:4022155), ADVISORY CHIEF COMPLIANCE OFFICER
HARRISON, BRETT LAMAR (CRD#:4032238), MANAGER AND CHIEF EXECUTIVE OFFICER
KESTERSON, BARBARA JO (CRD#:2747533), PRINCIPAL OPERATIONS OFFICER
NEARY, JOSEPH DANIEL (CRD#:2993505), MANAGER
OLSON, GREGORY ALAN (CRD#:2692482), ASSISTANT SECRETARY
RAMOS, RAMON (CRD#:2160203), MONEY LAUNDERING REPORTING OFFICER
SCHOTT, MARY FRANCES (CRD#:1453429), PRESIDENT
SHELSON, MARK PAUL (CRD#:1819252), TREASURER
SMILEY, STANLEY ROBERT (CRD#:3004604), VICE PRESIDENT
VANNOY-PINEDA, KATHLEEN DENISE (CRD#:1347526), SENIOR VICE PRESIDENT, BD CHIEF COMPLIANCE OFFICER AND SECRETARY
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
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