Triad Advisors LLC: Regulatory History Overview

The White Law Group reviews the regulatory history of Triad Advisors, LLC.  

Triad Advisors LLC, (CRD# 25803, Atlanta, GA) is a national financial advisory firm headquartered in Atlanta, GA. The firm is one of eight Advisor Group broker-dealers that has rebranded to “Osaic Wealth.” 

FINRA, the regulator that oversees brokers and brokerage firms, and the Securities and Exchange Commission may impose regulatory actions against a broker-dealer such as censures, fines, suspensions and restitution, among others. Regulatory actions can have serious consequences for a broker-dealer’s profile and reputation. 

Triad Advisors reportedly has 13 disclosure events on its broker record including 8 regulatory events, and 5 arbitrations, according to its CRD or FINRA BrokerCheck report. The following is a review of the firms regulatory history..

The White Law Group has previously filed FINRA claims against Triad Advisors on behalf of investors. For more information please see: Lion Street Financial and Triad Advisors Lawsuit Filed Today 

Triad Advisors Sanctioned for Supervisory Failures  

January 2022 – FINRA censured and fined Triad Advisors $195,000 after the firm allegedly failed to supervise recommendations of the high-risk LJM Preservation and Growth Fund (LJM).  Triad representatives allegedly sold $2,267,000 in LJM to fifty-eight customers, according to FINRA’s findings. LJM’s value dropped 80% during an extreme volatility event in February 2018. Consequently, the fund ultimately liquidated and closed, resulting in hundreds of thousands in losses for Triad’s customers.    

Triad Advisors also agreed to pay restitution of $510,256.57 and has “established and implemented policies, procedures, and internal controls” designed to address the issues.    

February 2021 – FINRA censured and fined Triad Advisors $150,000 and ordered the firm to pay restitution to investors for supervisory failures related to switching and short-term trading of class A share mutual funds. Triad Advisor allegedly failed to establish and maintain a reasonable supervisory system to achieve compliance with suitability requirements.  

According to FINRA, from June 3, 2015, through July 31, 2017, a registered representative associated with Triad engaged in short-term, unsuitable purchases and sales and switching of A share mutual funds in 10 customer accounts, resulting in customer losses in nine of the accounts of $43,998.48.  

Triad Advisors Lawsuits  

June 2024 – The White Law Group filed a FINRA claims against Triad Advisors alleging unsuitable investment recommendations.The firm submitted a claim to FINRA Dispute Resolution on behalf of a Georgia resident alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.   

The claim further alleges that Triad Advisors failed to supervise unsuitable recommendations in a high-risk alternative investment, Healthcare Trust Inc. The claim seeks damages of $100,000 and $500,000.  

October 2022 – The White Law Group filed a FINRA arbitration claim against Lion Street Financial and Triad Advisors for investment losses involving high risk alternative investments.  The firm filed the FINRA suit on behalf of a Colorado family, alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision for damages of $100,000.01 to $500,000.00.      

December 2020 – The White Law Group filed a FINRA Lawsuit against Triad Advisors Inc. for alleged violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The suit alleges that Triad Advisors Inc. unsuitably invested its client in numerous high risk illiquid investments. The claim was seeking damages in an amount between $1,000,000.01 and $5,000,000.  

For more information on claims involving Triad Advisors, please see: Investment News: Conflicts Alleged, Triad Broker Jim Walesa

Triad Advisors & GPB Capital Holdings  

July 2019 – Triad Advisors was reportedly named in six customer arbitration complaints seeking $1.65 million in damages in connection with GPB private placement offerings. There have been numerous lawsuits filed against GPB Capital since then, alleging serious financial misconduct and accusations of an alleged Ponzi scheme.  

In August 2021, the CEO of a GPB Capital Holdings, a New York-based registered investment adviser, and two others were arrested in connection with a massive “Ponzi-like scheme” that allegedly defrauded 17,000 investors across the U.S. out of more than $1.7 billion, according to the U.S. Attorney’s Office for the Eastern District of New York.  

The SEC alleges that the “Ponzi-like scheme” continued for more than four years because GPB was able to hide the funds’ financial condition from investors, neglecting to deliver audited financial information.  

Customer Complaints and Broker Misconduct 

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  There have been several cases of registered representatives employed by Triad Advisors who were allegedly involved in broker misconduct and fraudulent activities. When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.   

 June 2021 – FINRA barred Nathan Katz (CRD#: 846475) after allegations that he recommended short-term switching of mutual funds. FINRA alleged that Katz forged customer signatures on switch letters, and purportedly used discretion without authorization.  He also allegedly failed to timely disclose certain judgments and liens. Katz was reportedly affiliated with Triad Advisors in Largo, FL for 18 years until he was allegedly discharged. He reportedly has 14 disclosures on his broker report, according to FINRA. 

November 2018 – a long time Triad broker based in Park Ridge Illinois agreed to FINRA’s bar after allegations of failing to disclose federal and state tax liens on his Uniform Application for Securities Industry Registration or Transfer (Form U4). He currently has four complaints filed against him, two pending for allegedly making unsuitable investment recommendations. 

July 2016 – FINRA reportedly barred two Triad brokers in Ohio for private securities transactions. Between July 2010 and June 2014, the individuals in question were involved in selling investments in six interconnected limited liability companies (LLCs) to clients who were under the management of their registered investment advisor, PWC. In total, they managed to sell approximately $25.5 million worth of investments in these LLCs, spread across about 300 accounts belonging to 187 distinct clients. Notably, this figure included sales amounting to roughly $3.3 million to 25 PWC clients who were also customers of their broker-dealer, Triad. Furthermore, they reportedly sold $546,000 worth of other private investments to 17 PWC clients. 

Despite disclosing their ownership and operation of PWC to Triad, the individuals failed to provide written notice of their involvement in these private securities investment sales to the broker-dealer. Additionally, they personally invested a total of $230,000 in some of the same LLCs, either directly or on behalf of family members, without providing written disclosure to Triad. Lastly, the individuals neglected to inform Triad that they were receiving compensation at a rate of $500 per hour from certain LLCs for their oversight of the LLCs’ activities, including decision-making related to the businesses in which these LLCs were engaged. 

FINRA’s Supervision Rules 

All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.   

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.   

The Financial Industry Regulatory Authority (FINRA) operates the largest dispute resolution forum in the securities industry.  In fact, FINRA Dispute Resolution is the forum for almost all disputes between investors, brokerage firms and individual brokers.  This is mainly because the vast majority of brokerage firms have mandatory arbitration clauses in their account agreements that require investors to file their disputes through FINRA.

Class Action vs. Individual FINRA Arbitration Lawsuit 

You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually. 

National Securities Attorneys  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.     

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.      

With over 30 years of securities law experience, The White Law Group has the expertise to help investors who were defrauded by their financial advisors. 

 If you have suffered losses investing with Triad Advisors and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.