American Portfolios Advisors Inc. Sanctioned by SEC

American Portfolios Advisors Inc. Sanctioned by SEC for Overbilling, Disclosure Failures, and Falsified Records

The White Law Group is investigating potential claims involving American Portfolios Advisors Inc. (APA), a former registered investment adviser based in Holbrook, New York. On July 2025, the U.S. Securities and Exchange Commission (SEC) announced settled charges against APA for numerous violations, including failing to disclose conflicts of interest, overbilling clients, and submitting falsified compliance documents during an examination.

SEC Enforcement Action – Conflicts of Interest & Overbilling :

According to the SEC’s order, APA breached its fiduciary duty to clients from at least August 2020 through March 2023. The firm failed to fully and fairly disclose compensation conflicts involving its affiliated broker-dealer, American Portfolios Financial Services Inc., and an unaffiliated clearing broker. APA misleadingly indicated that transaction and service fees were determined by the clearing broker when, in fact, its affiliate added undisclosed markups—resulting in higher costs for clients.

Further violations included:

• Improperly charging advisory fees on alternative investments that were supposed to be fee-exempt.

• Failing to issue refunds for prepaid advisory fees when clients terminated their accounts mid-quarter, in violation of client agreements.

Falsified Compliance Documentation

The SEC also found that APA’s former chief compliance officer, and former president, allegedly created and backdated documents to mislead SEC examiners. The documents purported to be contemporaneous annual compliance reviews for three separate years but were fabricated and signed retroactively before being submitted to SEC staff.

Penalties and Sanctions – American Portfolios Advisors

Without admitting or denying the SEC’s findings, APA agreed to the following sanctions:

• A cease-and-desist order

• A censure

• A $1.75 million civil penalty

The former executives each consented to separate cease-and-desist orders and censures and fines.

Ownership Changes & Prior Disciplinary History

APA operated under Advisor Group during much of the relevant period. Advisor Group acquired American Portfolios Financial Services in June 2022, and was subsequently acquired by Osaic in November 2022. Osaic has since consolidated its affiliated firms under a single brand. A spokesperson for Osaic noted that the SEC order pertains to conduct before its acquisition of APA and does not reference Osaic.

In August 2024, APA’s affiliated broker-dealer, American Portfolios Financial Services, was also fined $225,000 by FINRA for failing to implement adequate anti-money laundering (AML) procedures.

Recovery Options for Investors

If you invested with American Portfolios Advisors or American Portfolios Financial Services and experienced excessive fees or misconduct, you may be able to recover losses through FINRA arbitration.

Free Consultation

For a free consultation with a securities attorney, please call The White Law Group at (888) 637-5510 or visit our website atwww.whitesecuritieslaw.com.