Written by The White Law Group• January 7, 2026• 1:10 am• Broker-Dealer Overview

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.

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FINRA Orders American Portfolios to Repay Millions Over Cash Sweep Program

In January 2026, the Financial Industry Regulatory Authority (FINRA) announced a major enforcement action against American Portfolios Financial Services, now part of Osaic Wealth, involving its bank deposit “cash sweep” program. According to FINRA, between April 2018 and September 2022, the firm charged customers excess fees and failed to adequately disclose how interest rates and fees were calculated in the program.

FINRA found that although American Portfolios told customers that fees would be tied to the Federal Funds Target Rate, the firm instead used different competitive rate benchmarks, resulting in clients earning less interest than expected. The regulator determined that the firm retained more than $3 million in excess fees and approximately $1.25 million in additional undisclosed interest, while also reflecting these amounts inaccurately in its financial reporting to FINRA.

In total, American Portfolios was ordered to pay $4.6 million in restitution to affected customers and a $550,000 civil penalty. FINRA also cited significant supervisory failures, noting that from 2018 through 2023 the firm did not maintain adequate systems and procedures to ensure accurate disclosures or compliance oversight related to the program. Approximately 85,000 customers were enrolled in the sweep program during the period FINRA reviewed.

American Portfolios consented to the findings without admitting or denying the allegations.

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.