Securities Lawyers Blog
The securities lawyers at Gana Weinstein LLP represent investors who have been mistreated by their brokers and suffered investment losses. Our firm is experienced in bringing claims against brokerage firms, such as First Trust Portfolios L.P., to hold Wall Street responsible for their misconduct. When a client contacts our firm they can expect that our attorneys will have the knowledge and ability to evaluate the potential claims and analyze their trading activity for red flags of misconduct. Our consultations are designed to help provide clients with all available options.
First Trust Portfolios is the broker-dealer arm of the First Trust investment group, sponsoring and distributing unit investment trusts and supporting the firm’s ETFs, mutual funds, closed-end funds and separately managed accounts. Founded in 1991 by Robert Van Kampen as Nike Securities, the privately owned firm is headquartered in Wheaton, Illinois, and is led by James Bowen, who acquired it in 2010.
First Trust Portfolios L.P. – By the Numbers:
- CRD #: 28519
- Regulatory Events: 4
- Broker Employees: 683
First Trust Portfolios L.P. – In the News:
FINRA v. First Trust Portfolios L.P. (Case #2020066123602) – Between at least 2018 and at least February 2024, First Trust provided non-cash compensation (e.g., gifts, meals, and entertainment) to representatives of retail broker-dealers that sell First Trust investment company securities (Client Firms) in amounts that significantly exceeded FINRA limits, and in certain instances provided non-cash compensation preconditioned on Client Firm representatives achieving sales targets. During the same period, First Trust wholesalers falsified internal expense reports relating to non-cash compensation provided to Client Firm representatives, and First Trust sent Client Firms false information concerning the value, nature, and frequency of non-cash compensation provided. Finally, the Firm failed to establish, maintain, and enforce a system reasonably designed to achieve compliance with non-cash compensation rules and expense-related recordkeeping requirements. As a result, First Trust violated FINRA Rules 2010, 2341, 3110, and 4511, as well as Section 17(a) of the Securities Exchange Act of 1934 and Exchange Act Rule 17a-3. For these violations, First Trust is censured, fined $10 million, and has agreed to an undertaking.
If you have suffered investment losses at First Trust Portfolios L.P., the FINRA arbitration attorneys at Gana Weinstein LLP can review your accounts and tell you whether you have a claim. Our consultations are free and we welcome all inquiries.