Commonwealth Financial Network Regulatory History Overview   

Commonwealth Financial Network Regulatory History Overview

Commonwealth Financial Network, Inc. (CRD#: 8032) is a FINRA-registered independent broker-dealer headquartered in Waltham, Massachusetts. The firm reported $2 billion in revenue in 2022. In 2025, Commonwealth was acquired by LPL Financial.

Firm Background & Regulatory Record

According to FINRA BrokerCheck, Commonwealth Financial Network has:

• 25 regulatory actions
• 1 civil event
• 17 arbitrations
• 1 bond

Regulatory actions may involve censures, fines, suspensions, or license revocations for violations of securities laws and rules. Arbitration awards often stem from customer disputes and may result in financial compensation for investors.

Recent Regulatory Action – Massachusetts Securities Division

June 9, 2025 – Commonwealth Financial Network agreed to pay $466,182.93 in restitution nationwide, including $37,632.87 to Massachusetts residents, after the Massachusetts Securities Division alleged the firm charged unreasonable commissions and failed to supervise certain equity transactions. The settlement included a cease-and-desist order, censure, and required changes to policies and procedures.

Update on SEC Charges: Conflicts of Interest

April 2, 2024 – A Massachusetts federal judge ordered Commonwealth to pay over $72 million for failing to disclose conflicts of interest to clients, breaching its fiduciary duty. The court found the firm failed to disclose a cost-sharing arrangement with National Financial Services LLC, leading to $65.6 million in disgorgement and a $6.5 million civil penalty.

Broker Misconduct and Customer Complaints

Commonwealth has been linked to several cases of broker misconduct:

• Gerald Eaton – Former broker barred in 2020 after pleading guilty to stealing over $3.7 million from clients, many elderly or ill.
• Benjamin Bourgeois, Jr. – Former broker arrested in 2019 for allegedly stealing over $359,000 from a 78-year-old client.
• Multiple current and former Commonwealth brokers have faced customer disputes alleging unsuitable investments, misrepresentations, and unauthorized transactions.

FINRA Rule 3110 – Supervision Requirements

FINRA Rule 3110 requires broker-dealers to establish and maintain supervisory systems to ensure compliance with securities laws. Commonwealth has faced scrutiny for supervisory lapses, including failure to identify red flags in broker conduct and client account activity.

Additional Conflicts of Interest Case

August 1, 2019 – The SEC charged Commonwealth with failing to disclose over $100 million in revenue-sharing payments related to certain mutual fund investments, alleging clients were not informed of lower-cost alternatives.

FINRA Sanctions for Overcharges

November 2019 – FINRA sanctioned Commonwealth for overcharging retirement plan investors via mutual fund share classes between 2009 and 2017. The firm paid $888,337 in restitution after self-reporting the issue.

Recovery of Investment Losses

If you suffered losses due to Commonwealth Financial Network’s misconduct or supervisory failures, you may be able to recover funds through FINRA arbitration. FINRA arbitration is often faster and less expensive than traditional litigation.

Free Consultation

If you have concerns about investments with Commonwealth Financial Network, call The White Law Group at 888-637-5510 for a free, no-obligation consultation.

The White Law Group has handled over 800 FINRA arbitration cases nationwide and represents investors in claims involving unsuitable investments, misrepresentation, unauthorized trading, and other securities violations.

With offices in Seattle, Washington and Chicago, Illinois, we review cases in all 50 states.

FAQs About Commonwealth Financial Network Complaints

1. What is Commonwealth Financial Network’s regulatory history?

According to FINRA BrokerCheck, Commonwealth Financial Network has 25 regulatory actions, 1 civil event, 17 arbitrations, and 1 bond on record. These include SEC charges, FINRA sanctions, and state regulatory actions involving supervision failures, overcharges, and conflicts of interest.

2. Has Commonwealth Financial Network recently faced regulatory penalties?

Yes. On June 9, 2025, the Massachusetts Securities Division ordered the firm to pay over $466,000 in restitution for allegedly charging unreasonable commissions and failing to supervise equity transactions. In April 2024, a federal judge ordered Commonwealth to pay $72 million for failing to disclose conflicts of interest.

3. Can I recover losses from investments made through Commonwealth Financial Network?

Possibly. If your losses were caused by broker misconduct, unsuitable recommendations, or supervisory failures, you may be able to file a claim through FINRA arbitration to seek recovery.