Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP represent investors in their disputes with brokerage firms, such as Cetera Advisors LLC. Our firm can analyze your accounts and investments in order to determine if there was any broker misconduct in the handling of your accounts. Our analysis can reveal whether an investor has been a victim of misconduct such as unsuitable investments, unauthorized trading, excessive trading, or investment fraud.
Cetera Advisors is an independent broker-dealer that supports affiliated financial professionals in providing brokerage and investment services, directing client capital to third-party managers and funds. Headquartered at 5299 DTC Boulevard in Greenwood Village, Colorado, the firm is part of the Cetera network and has been registered with the SEC since 1981.
Cetera Advisors LLC – By the Numbers:
- CRD #: 10299
- Regulatory Events: 15
- Arbitration Events: 7
- Broker Employees: 2,320
Cetera Advisors LLC – In the News:
FINRA v. Cetera Advisors LLC (Case #2018057331002) – From at least March 2019 through August 2021, the Cetera Firms’ supervisory systems, including their written supervisory procedures (WSPs), were not reasonably designed to achieve compliance with Section 5 of the Securities Act of 1933, in violation of FINRA Rules 3110 and 2010. Over the same period, the Cetera Firms’ anti-money laundering (AML) compliance program was not reasonably designed to detect and cause the reporting of suspicious transactions, in violation of FINRA Rules 3310(a), 3310(f)(ii), and 2010. Additionally, from at least January 2017 through August 2021, Cetera Advisors failed to reasonably supervise the creation and dissemination of consolidated reports and failed to preserve such reports, in violation of Section 17(a) of the Securities Exchange Act of 1934, Exchange Act Rule 17a–4(b)(4), and FINRA Rules 3110, 4511 and 2010. For these violations, the Cetera Firms are censured, fined $1.1 million, and have agreed to an undertaking.
FINRA v. Cetera Advisors LLC (Case #2015046716901) – 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. In 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.
FINRA v. Cetera Advisors LLC (Case #2016050259001) – 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 front-end 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.
Gana Weinstein LLP has successfully handled hundreds of customer investment disputes with their brokerage firms. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free and we welcome all inquiries.