The Strategic Financial Alliance, Inc. – Private Placement Sales & FINRA Sanction
The White Law Group is investigating potential claims involving The Strategic Financial Alliance, Inc. (CRD#: 126514), a FINRA-registered broker-dealer headquartered in Atlanta, Georgia. Strategic has been active in selling alternative investments, including private placements, which often present significant risks to retail investors.
Private Placement Investments – Risks for Investors
Private placements are speculative securities that are not traded on public markets. They are often illiquid, come with steep commissions, and provide limited transparency compared to traditional investments. Although marketed as opportunities for diversification and high returns, these products are frequently unsuitable for many investors—especially retirees or conservative investors.
Types of private placements sold by firms like Strategic may include:
- Real estate programs
- Oil & gas ventures
- Regulation D offerings
- Non-traded REITs
Such products often expose investors to the risk of complete loss, conflicts of interest, and high fees.
FINRA Sanction – Supervisory Failures
On February 26, 2015, FINRA sanctioned The Strategic Financial Alliance for supervisory failures regarding consolidated account reports.
Between November 2011 and December 2014, about 54 Strategic representatives used at least nine different systems—including Microsoft Excel—to prepare reports for approximately 1,500 customers. These reports combined account data and, in many cases, allowed manual entries. FINRA found that Strategic:
- Had no written supervisory procedures for these reports,
- Failed to ensure accuracy or disclose sources of valuation data,
- Did not maintain documentation verifying manual entries, and
- Sometimes provided reports with inadequate or missing disclosures.
As part of the settlement, Strategic agreed to a censure, a $30,000 fine, and an undertaking to certify adoption of adequate supervisory procedures. FINRA noted that the firm had no prior disciplinary history.
Recovery Options for Investors
Brokerage firms have a duty to conduct due diligence on the investments they recommend and to ensure recommendations are suitable for their clients. When they fail, investors may have grounds to pursue claims through FINRA arbitration.
If you invested in private placements or other alternative products with The Strategic Financial Alliance and experienced losses, you may be entitled to recover damages.
Free Consultation with Securities Attorneys
The White Law Group has handled more than 800 FINRA arbitration cases involving high-risk investments. Our attorneys represent investors nationwide from offices in Chicago, Illinois, and Seattle, Washington.
If you are concerned about your investments with The Strategic Financial Alliance, Inc., please call 888-637-5510 for a free consultation, or visit www.whitesecuritieslaw.com.
Last modified: September 3, 2025
