Brokerage Firm Alert: Our Investment Fraud Attorneys Are Investigating Cetera Advisors LLC
Did You Lose Money Because of Cetera Advisors LLC? Are You Aware of Complaints and Fines Against Cetera Advisors LLC?
Updated on: December 21, 2023
Cetera Advisors LLC (“Cetera Advisors”) (CRD # 10299) is a broker-dealer and has been the subject of at least fourteen (14) complaints filed by regulatory organizations like FINRA and many more by investors like yourself. At Patil Law, we have investigated Cetera Advisors LLC, its regulatory complaints and fines, and its customer complaints. If you’ve invested your hard-earned money with Cetera Advisors LLC, you should be very concerned about any regulatory actions, regulatory fines, or customer complaints against your brokerage firm.
Our team of attorneys specialize in representing investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors. As an investor, you may be entitled to compensation for losses accrued due to mismanagement of your investments.
If you believe you have a claim against Cetera Advisors LLC, you should strongly consider hiring an investment fraud lawyer and not wait until it’s too late to file a claim. Reach out to our legal team via the secure and private online form or call our firm directly toll-free at 1-800-950-6553 for a free consultation so that we can discuss your case and see what we can do to help you get the compensation you need and deserve. We do not charge anything for the ability to discuss your matter and evaluate your potential case.
Jump to Topic
Do I Have an Investment Fraud Case Against Cetera Advisors LLC?
How To File a Claim Against Cetera Advisors LLC To Get Your Money Back
Client Complaints – Is Your Financial Advisor on This List?
Did Misconduct By a Cetera Advisors LLC Advisor Impact Your Investments? What Can You Do?
Cetera Advisors LLC Has Many Regulatory Complaints and Fines
A Closer Look Into Cetera Advisors LLC’s Regulatory Issues
Next Steps and Free Consultation with Our Legal Team
Do I Have an Investment Fraud Case Against Cetera Advisors LLC?
✅ YES, if you’ve experienced financial losses due to the actions or misconduct of Cetera Advisors LLC or its staff, you have the right to pursue legal action against them. You can sue Cetera Advisors LLC but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding.
FINRA arbitration proceedings are generally private proceedings that can last anywhere from a few months to approximately a year. Our attorneys have personal experience in representing clients in FINRA arbitration proceedings and know very well how you can not only sue Cetera Advisors LLC in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a case against Cetera Advisors LLC is to reach out to our legal team at Patil Law via the secure and private online form or call us toll-free at 1-800-950-6553 for a complimentary consultation.
Who is Cetera Advisors LLC?
Cetera Advisors (CRD # 10299) 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, Cetera Advisors LLC 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.
How To File A Claim Against Cetera Advisors LLC To Get Your Money Back
If you have questions about Cetera Advisors LLC, its advisors, or the management or performance of your accounts, please contact our legal team at Patil Law via the secure and private online form or call us toll-free at 1-800-950-6553 for a free and complimentary initial consultation. Our attorneys have experience handling well over a thousand securities arbitration claims, and our law firm has successfully recovered over $25 million for our clients to date.
We understand the stress that comes along with realizing that your financial advisor or brokerage firm has made poor decisions with your money. We can help you, as we have helped hundreds of other clients in the past.
Client Complaints – Is Your Financial Advisor on This List?
There have been scores of customer complaints filed against Cetera Advisors LLC stockbrokers and investment advisors over the years. Many of these complaints deal with financial advisor misconduct, poor or unsuitable investment recommendations, failure by these brokerage firms to supervise their employees (the financial advisors), and general fraud against consumers. We have launched many investigations of current and former Cetera Advisors LLC advisors:
- Steven Trevor Skipper with Cetera Advisors LLC (previously with LPL Financial and Edward Jones)
- John Patrick Gaffney currently unaffiliated (previously with Cetera Advisors and B. Riley Wealth Management)
- Brian Jon Robejsek with Independence Capital Co., Inc. (previously with Cetera Advisors and Legacy Financial Services)
- David Samuel Waters with Cetera Advisors (previously with LPL Financial and Private Advisor Group)
- Mark Haenny with LPL Financial (previously with Cetera Advisors and First Allied Advisory Services)
- Todd Ray Anderson currently unaffiliated (previously with Cetera Advisors and Benchmark Investments)
- Jeffrey Todd Christenson currently unaffiliated (previously with Cetera Advisors and ING Financial Partners)
- Jess W. Hurst II with Cetera Advisors (previously with The Millennial Group and Vestax Securities Corporation)
- Billy Wayne Martin currently unaffiliated (previously with Cetera Advisors and Pacific West Securities)
- Patricia Ann Gleason currently unaffiliated (previously with Cetera Advisors and Ameriprise Financial Services)
- Daniel McPherson currently unaffiliated (previously with Cetera Advisors and Pacific West Securities)
- Anthony Fazio currently unaffiliated (previously with Cetera Advisors and Financial Network Investment Corporation)
- Andrew Nguyen currently unaffiliated (previously with Cetera Advisors and Cetera Investment Advisers)
- Brian Megley with Cetera Advisors (previously with Investors Capital Advisory and Investors Capital Corp.)
- George Merhoff currently barred (previously with Cetera Advisors and Pacific West Securities)
- Nina Jessee currently barred (previously with Cetera Advisors and Investors Capital Corp.)
- Ken Balser currently barred (previously with Cetera Advisors and LPL Financial)
- Mark Barrand currently unaffiliated (previously with Cetera Advisors and Ameriprise Financial Services)
- Peter Stefanic with Cetera Advisors (previously with Pacific West Financial Consultants and Pacific West Securities)
- James Bakun currently unaffiliated (previously with Cetera Advisors and Investors Capital Corp.)
- Stephen Carver currently barred (previously with Cetera Advisors and Lifemark Securities Corp.)
- James Gibson with Cetera Advisors (previously with Private Advisor Group and LPL Financial)
- Stuart Haw with Cetera Advisors (previously with Investors Capital Advisory and Investors Capital Corp.)
- Richard Laskin with Cetera Advisors (previously with SII Investments and Cadaret, Grant & Co.)
- Jimmy Maldonado with LPL Financial (previously with Invest Financial Corporation and Cetera Advisors)
- Melinda Olbert currently unaffiliated (previously with Cetera Advisors and Investors Capital Corp.)
- Bo Li with Cetera Advisors (previously with Prudential Financial Planning Services and Pruco Securities)
- Charles Krsek with Cetera Advisors (previously with Metlife Securities and Metropolitan Life Insurance Company)
- Hillary Wertlieb with American Portfolios Financial Services (previously with Cetera Advisors and Investors Capital Corp.)
- James McKinney currently barred (previously with Cetera Advisors and Securian Financial Services)
- Jerry Gintz with Cetera Advisors (previously with Investment Financial Corporation and Intersecurities)
- Joseph Medina with Infinity Financial Services (previously with Cetera Advisors and Newbridge Financial Services Group)
- Kevin Fles with Cetera Advisors (previously with Pacific West Financial Consultants and Pacific West Securities)
- Martin Berman with Cetera Investment Advisers (previously with Cetera Advisors and First Allied Securities)
- Peter Rhee with Cetera Investment Advisers (previously with Cetera Advisors and First Allied Securities)
- Ryan Malloch with Cetera Advisors (previously with M1 Capital Management and United Securities Alliance)
- Stephen Lawler with Cetera Investment Advisers (previously with Cetera Advisors and First Allied Securities)
- Wayne Smith with Cetera Advisors (previously with QA3 Financial Corp. and A.G. Edwards & Sons)
- Adam Marquardt currently barred (previously with Cetera Advisors and Wells Fargo Advisors Financial Network)
- Rami Sassoon with Cetera Advisors (previously with J.P. Morgan Securities and Chase Investment Services Corp.)
- Michael Shonsey with Brokers Financial (previously with Cetera Advisors and Brokers International Financial Services)
- Timothy Farris with Cetera Advisors (previously with SPC and Sigma Financial Corporation)
- William O’Brien with Cetera Advisors (previously with Commonwealth Financial Network and NYLife Securities)
- Scott Oliphant with Cetera Advisors (previously with Creative Financial Designs and CFD Investments)
Did Misconduct By a Cetera Advisors LLC Advisor Impact Your Investments?
If you have lost money investing with any of these Cetera Advisors LLC 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 our legal team at Patil Law toll-free at 1-800-950-6553 or reach out to us via the secure and private online form for a free initial consultation.
Cetera Advisors LLC Has Many Regulatory Complaints and Fines
There have been approximately fourteen (14) state and self-regulatory body disclosure events against Cetera Advisors LLC; that is, final and formal proceedings initiated by a regulatory authority like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been countless customer complaints filed against Cetera Advisors LLC for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
Our legal team at Patil Law has reported and written about these regulatory problems and customer complaints over many years. A few of the notable FINRA Sanctions for its Supervisory Failures are below.
A Closer Look Into Cetera Advisors LLC’s Regulatory Issues
Cetera Advisors LLC has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. Details of fourteen (14) regulatory issues are listed below:
Fined $1,000,000 for Alleged Supervisory Failures In Supervising Certain Private Securities Transactions Conducted by Their Dually-Registered Representatives (DRRs) (AWC No. 2015046716901)
Overview from FINRA’s Disciplinary Office:
From January 2011 through December 2018, Networks and Advisors, and from November 2012 through January 2018, Specialists (the relevant time periods) each failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to supervise certain private securities transactions conducted by their dually-registered representatives (DRRs) at unaffiliated or “outside” registered investments advisors (RIAs). By early 2018, these DRRs managed more than $80 billion in customer assets across more than 47,000 accounts.
The Cetera Firms were aware of the supervisory deficiencies- they were identified in Securities and Exchange Commission (SEC) examinations in July 2013, August 2015, and September 2017—yet, despite several efforts to address such deficiencies, failed to implement systems and procedures to reasonably supervise the transactions. Networks, Advisors, and Specialists’ failure to supervise the DRRs’ participation in private securities transactions violated NASD Rule 3040(c) and FINRA Rules 3280(c) and 2010.1In addition, the firms’ failures to establish, maintain and enforce reasonable supervisory systems and written supervisory procedures violated NASD Rules 3010(a) and (b) and FINRA Rules 3110(a) and (b) and 2010.
Networks, Advisors, and Specialists also failed to make and preserve related books and records in violation of NASD Rule 3110 and FINRA Rules 4511 and 2010.
Fined for Allegedly Disadvantaging Certain Retirement Plan and Charitable Organization Customers Eligible for Class A Share Purchases Without Front-End Sales Charge (AWC No. 2016050259001)
Overview from FINRA’s Disciplinary Office:
Between July 1,2009, and January 1,2017 (the ?Relevant Period”), CA disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a frontend sales charge (“Eligible Customers”). These Eligible Customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. During this period, CA failed to establish and maintain a supervisory system and procedures reasonably designed to ensure that Eligible Customers who purchased mutual fund shares received the benefit of applicable sales charge waivers. As a result, CA violated NASD Conduct Rule 3010 (for misconduct before December 1, 2014), FINRA Rule 3110 (for misconduct on or after December 1,2014), and FINRA Rule 2010.
Fined $250,000 for Alleged Failure In Applying Sales Charge Discounts to Certain Eligible Customers of Unit Investment Trusts (“UITs”) (AWC No. 2014041676801)
Overview from FINRA’s Disciplinary Office:
From May 1, 2009 to April 30, 2014 (the “Relevant Period”), Cetera Advisors failed to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”) in violation of FINRA Rule 2010. In addition, Cetera Advisors 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 Conduct Rule 3010 and FINRA Rule 2010.
Fined for Alleged Supervisory Failures In Accurately Completing its Self-Assessment (AWC No. 2005001166601)
Overview from FINRA’s Disciplinary Office:
In the Breakpoint Self-Assessment Follow-Up Review, FINRA found that Respondent did not accurately complete its Self-Assessment. Among other things, Respondent’s Self-Assessment underreported the number of transactions with missed breakpoints. Had Respondent accurately completed its Self-Assessment, FINRA would have directed the firm to undertake additional remedial steps.
Respondent also was required to conduct a Trade-by-Trade review of its transactions as part of its remediation process following the Self-Assessment. Respondent further was required to conduct a Trade-by-Trade review of Vestax transactions. FINRA found that Respondent failed to complete these reviews accurately.
By reason of the aforementioned conduct, Respondent violated NASD Conduct Rule 2110.
Fined $12,000 for Alleged Supervisory Failures In Detecting and Investigating Undisclosed Private Securities Transactions by Representatives (AWC No. 2006004754301)
Overview from FINRA’s Disciplinary Office:
MFSC did not establish and maintain a supervisory system reasonably designed to detect and investigate undisclosed private securities transactions by registered representatives, in violation of NASD Conduct Rules 3010 and 2110.
Fined $10,000 for Alleged Supervisory Failures In Reporting Trace Transactions in Eligible Securities (AWC No. 2007008580401)
Overview from FINRA’s Disciplinary Office:
NASD Rules 2110, 3010, 6230 (a), 6230(c)(8) – Multi-Financial Securities Corporation failed to report to trace transactions in trace-eligible securities executed on a business day during trace system hours within 45 minutes of the time execution; failed to report to trace transactions in trace-eligible securities executed on a business day during trace system hours within 30 minutes of the time of execution; failed to report to trace the correct time of trade execution for transactions in trace-eligible securities. The firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to applicable securities laws, regulations and NASD rules concerning trace reporting.
Fined $1,228,000 for Allegedly Implementing a Revenue Sharing Program Called The Strategic Partners Platform (AWC No. EAF0400760002)
Overview from FINRA’s Disciplinary Office:
NASD Rules 2110 and 2830(k)(1) – Respondent maintained a shelf space (revenue sharing) program known sas the strategic partners platform in connection with retail sales of mutual funds. In return for payments, mutual fund complexes that participated in the program received preferential treatment from the firm in the sales and marketing of their funds. The program provided increased access to the firm’s retail brokerage sales force, placement of materials on the firm’s websites, identification as a strategic partner on the ITS Intranet Websites including links to the strategic partners’ websites and payment of ticket charges for retail brokerage sales of strategic partners’ funds. Some mutual fund complexes made payments for participating in the program by directing approximately $4.7 million in mutual fund portfolio brokerage commissions to the firm through clearing brokers.
Fined $17,500 for Alleged Supervisory Failures In Creating an Effective Anti-Money Laundering Program According To The Requirements Of The Bank Secrecy Act And Its Regulations (AWC No. E3A2005000101)
Overview from FINRA’s Disciplinary Office:
NASD Rules 2110, 3010, 3011, MSRB Rule G-41 – Respondent failed to implement a written anti-money laundering program reasonably designed to achieve and monitor compliance with the requirements of the Bank Secrecy Act and the regulations promulgated thereunder. The findings stated that the firm, failed to establish and maintain a supervisory system or written supervisory procedures that were reasonably designed to enable the firm to prevent and detect the charging of excessive commissions on mutual fund liquidations.
Fined $300,000 for Alleged Supervisory Failures In Adopting Written Policies For Protecting Customer Records And Information (Docket/Case Number: 3-20490)
Overview from FINRA’s Disciplinary Office:
The Securities and Exchange Commission (The “Commission”) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to sections 15(b) and 21C of the Securities Exchange Act of 1934 (“Exchange Act”) and sections 203(e) and 203(k) of the Investment Advisers Act of 1940 (“Adviser Act”), against Cetera Advisor Networks LLC, Cetera Advisors LLC, Cetera Investment Services LLC, Cetera Financial Specialists LLC, and Cetera Investment Advisers LLC (Together, “Cetera Entities” or “respondents”).
The Commission finds that these proceedings arise out of Cetera Entities’ failure to adopt written policies and procedures reasonably designed to protect customer records and information, in violation of Rule 30(a) of regulation S-P (“Safeguards Rule”) and, with respect to Cetera Advisors LLC and Cetera Investment Advisers LLC, failure to adopt and implement reasonably designed procedures for review of communications sent to impacted clients in violation of Section 206(4) of the Adviser Act and Rule 206(4)-7 thereunder.
The Safeguard Rule requires every broker-dealer and every investment adviser registered with the commission to adopt written policies and procedures reasonably designed to: (1) insure the security and confidentiality of customer records and information; (2) protect against any anticipated threats or hazards to the security or integrity of customer records and information; and (3) protect against unauthorized access to or use of customer records or information that could result in substantial harm or inconvenience to any customer.
Cetera Entities are registered with the Commission as a broker-dealers, investment advisers, or both. Between November 2017 and June 2020, email accounts of over 60 Cetera Entities’ personnel were taken over by unauthorized third parties resulting in exposure of over 4,388 of Cetera Entities’ customers’ Personally Identifiable Information (“PII”) stored in the compromised email accounts. At the time, none of these accounts had multi-factor authentication (“MFA”) turned on, even though Cetera Entities’ own policies required MFA “Wherever possible,” beginning in 2018. Although these email account takeovers do not appear to have resulted in any unauthorized trades or transfers in brokerage customers’ or advisory clients’ (“customers”) accounts, Cetera Entities violated the Safeguards Rule because their policies and procedures to protect customer information and to prevent and respond to cybersecurity incidents were not reasonably designed to meet these objectives, specifically as applied to independent contractor representatives and offshore contractors. Cetera Entities had a significant number of security tools at their disposal that allowed them to implement controls that would mitigate these higher risks. However, Cetera Entities failed to use these tools in the manner tailored to their business, exposing their customers’ PII to unreasonable risks.
Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder require a registered investment adviser, or an investment adviser required to register, to adopt and implement written compliance policies and procedures reasonably designed to prevent violations, by the adviser or its supervised persons, of the Adviser Act and the rules adopted by the Commission thereunder. Cetera Advisors LLC (“Cetera Advisors”) and Cetera Investment Advisers LLC (“Cetera Investment Advisers”) violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder by failing to adopt and implement reasonably designed policies and procedures regarding review of communications to advisory clients. This failure resulted in sending breach notifications to the firms’ clients that include misleading template language suggesting that the notifications were issued much sooner that they actually were after the discovery of the incidents.
Fined $2,090 for Allegedly Unintentionally Conducting Securities Transactions Without The Required License (Docket/Case Number: SB-03-21)
Overview from FINRA’s Disciplinary Office:
On July 13, 2017, the Department of Insurance, Securities and Banking (DISB) received an application and related documentation from Cetera Advisors LLC. On behalf of one of its investment adviser representatives (IAR) for a license to act as an IAR of Cetera in the district. As part of the application process, the IAR informed DISB that he had unknowingly effected a small number of securities-related transactions in the district of Columbia without being licensed in the district of Columbia. Cetera entered a settlement agreement with DISB for employing an unlicensed IAR.
Fined $70,000 for Alleged Supervisory Failures Overseeing And Violation Of “Unfail” Conduct (Docket/Case Number: S-17-0007-A)
Overview from FINRA’s Disciplinary Office:
DFR alleged violation of “Unfail” Conduct and failure to supervise. Cetera Advisors, LLC and Mr. Merhoff neither admitted nor denied the allegations.
Fined $10,000 for Alleged Supervisory Failures In Promptly Providing Required Securities Administrative Information On Insurance License Renewal Applications (Docket/Case Number: 2008-0227-S)
Overview from FINRA’s Disciplinary Office:
New York alleged that the firm failed to timely provide information regarding securities administrative actions as required on its insurance license renewal applications dated June 16, 2006 and May 2, 2007.
Fined $3,000 for Allegedly Engaged In Deceptive Or Manipulative Acts (Docket/Case Number: 2002-7-17)
Overview from FINRA’s Disciplinary Office:
Respondent batten allegedly engaged in deceptive or manipulative acts as defined under Rule 111(01) and (02) of the rules pursuant to the Idaho Securities Act (Idaho Idapa 12.01.08.111). Respondent batten allegedly violated Idaho Code Section 30-1403(3). Respondents lodge and multi-financial allegedly failed to diligently supervise the securities activities of respondent batten and allegedly violated rule 119(01) and (03) of the rules pursuant to the Idaho Securities Act (Idaho IDAPA 12.01.08.119)
Fined $5,000 for Allegedly Opening Branch In Texas After Starting Operations (Docket/Case Number: CEN/FIN-1165)
Overview from FINRA’s Disciplinary Office:
Registered branch office in the State of Texas after operations began.
Next Steps and Free Consultation with Our Legal Team
If you have questions about Cetera Advisors LLC, its advisors, or the management or performance of your accounts, please contact our team at Patil Law toll-free at 1-800-950-6553 for a free initial consultation. Or please reach out to us through our secure and private contact form and we will call you back quickly to discuss your case.
Our attorneys have experience handling well over a thousand securities arbitration claims, and our law firm has successfully recovered over $25 million for our clients to date. We understand the stress that comes along with realizing that your financial advisor or brokerage firm has made poor decisions with your money.
We can help you, as we have helped hundreds of other clients in the past. We are happy to serve you as well as to provide you with a custom report of your advisor’s and your brokerage firm’s complaints.