Written by The White Law Group• August 5, 2025• 8:10 pm• Blog, Current Investigations

American Portfolios: Customer Complaints, Regulatory Actions

American Portfolios Financial Services Review

The White Law Group is reviewing the regulatory history of American Portfolios Financial Services, a broker-dealer with a record of disciplinary actions and customer complaints. In 2022, the firm was acquired by Advisor Group—now known as Osaic Wealth—bringing it under the umbrella of one of the nation’s largest broker-dealer networks.

Table of Contents

Overview of American Portfolios

American Portfolios Financial Services (CRD#: 18487), formerly based in Holbrook, NY, is a national financial advisory firm. According to FINRA, the firm has 8 disclosure events on record, including 7 regulatory events and 1 arbitration.

These regulatory actions, which include censures, fines, and suspensions, raise concerns about the firm’s supervisory practices and compliance record.

Advisor Group/Osaic Wealth Acquisition

In November 2022, Advisor Group (now Osaic Wealth) acquired American Portfolios. At the time of the deal, the firm managed nearly $40 billion in client assets and had over 850 financial advisors.

Regulatory Sanctions

$225,000 Fine – AML & Supervision: In August 2024, FINRA fined American Portfolios $225,000 for failing to implement an adequate AML program and for not maintaining proper supervisory procedures.

$225,000 Fine – Fund Transfers: In December 2021, the firm was fined another $225,000 after supervisory lapses allowed a sales assistant to misappropriate about $390,000 from customer accounts.

$650,000 SEC Penalty – Volatility ETFs: In November 2020, the SEC sanctioned the firm for unsuitable sales of volatility-linked ETFs. American Portfolios paid $650,000 in penalties and was censured.

$50,000 Fine – Mutual Fund Switching: In December 2015, FINRA fined the firm $50,000 for unsuitable mutual fund switching and related supervisory failures.

Broker Misconduct

Bob Halldin (CRD#: 1458098): In December 2020, FINRA barred former advisor Bob Halldin for refusing testimony in an investigation involving customer complaints. His record shows 3 complaints, 2 liens, and a 2020 bankruptcy.

Mark Hopkins (CRD#: 2653473): In July 2020, the SEC charged former advisor Mark Hopkins with stealing more than $1 million from clients. He was later barred by FINRA in 2019 after allegations of misusing customer funds and falsifying account statements.

Recovery Options for Investors

Investors may consider whether a class action lawsuit or an individual FINRA arbitration is best. Large claims (over $100,000) are typically more effective in arbitration, while smaller claims may be grouped in class actions.

Brokerage firms are required to supervise their advisors. If firms fail to detect misconduct, they may be held responsible for investor losses through FINRA arbitration.