American Portfolios Financial Services- Regulatory History 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. The firm’s prior regulatory issues remain part of its record.
American Portfolios Financial Services (CRD#: 18487), formerly based in Holbrook, NY, is a national financial advisory firm. According to FINRA, the firm now has 10 disclosure events on record, including 9 regulatory events and 1 arbitration.
American Portfolios Complaints: FINRA Fines Firm Over Unit Investment Trust Sales
On September 22, 2026, FINRA announced it had censured American Portfolios Financial Services, fined the firm $400,000, and ordered it to pay $1,232,939 in restitution plus interest to 295 customers. According to the FINRA settlement, from January 2018 to October 2024 the firm allegedly failed to supervise brokers who told customers to sell unit investment trusts before they matured. Osaic Wealth signed the settlement as the firm’s acquirer. The firm neither admitted nor denied the findings.
How Early Unit Investment Trust Sales Allegedly Cost Customers
Unit investment trusts charge most of their sales costs up front and are built to be held until a set end date. FINRA found that two brokers working as a team allegedly recommended early sales about 61% of the time, and a third broker did so about 78% of the time. Customers often used the money to buy a new trust and paid a new round of sales charges. FINRA also found the firm had no system to flag these early sales before October 2018, and its later alerts didn’t show supervisors how early a trust was sold.
FINRA Orders American Portfolios to Repay $4.6 Million Over Cash Sweep Program
In January 2026, FINRA ordered American Portfolios Financial Services, now part of Osaic Wealth, to pay $4.6 million in restitution and a $550,000 fine over its bank deposit “cash sweep” program. From April 2018 to September 2022, the firm allegedly told customers their sweep fees were tied to the Federal Funds Target Rate but used different benchmarks instead. As a result, customers allegedly earned less interest than expected, and the firm kept more than $3 million in excess fees and about $1.25 million in undisclosed interest. About 85,000 customers were enrolled in the program, and the firm neither admitted nor denied the findings.
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
$400,000 Fine and $1.23 Million Restitution: Unit Investment Trust Supervision: In September 2026, FINRA censured and fined American Portfolios for allegedly failing to supervise recommendations that customers sell unit investment trusts early, from 2018 to 2024.
$550,000 Penalty and $4.6 Million Restitution: Cash Sweep Program: In January 2026, FINRA ordered the firm to repay customers over alleged excess fees and inadequate disclosures in its bank deposit sweep program.
$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
Peter Lawrence (CRD# 2695687): Lawrence’s record reflects numerous disclosures, including 17 customer disputes, 2 employment separations, settlements, regulatory actions, and a recent FINRA investigation.
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.
FINRA’s settlement states that the restitution order does not stop customers from pursuing their own claims. If you paid repeated sales charges on unit investment trusts at American Portfolios, you may be able to recover losses through FINRA arbitration, even if you aren’t on FINRA’s restitution list.
Free Consultation
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
If you suffered investment losses with American Portfolios Financial Services, please call 888-637-5510 for a free consultation.
FAQs : American Portfolios
What regulatory issues has American Portfolios faced?
The firm has been sanctioned for AML failures, supervisory lapses, unsuitable mutual fund switching, improper sales of volatility-linked ETFs, excess cash sweep fees, and, in September 2026, allegedly failing to supervise early sales of unit investment trusts.
Can investors recover losses from American Portfolios?
Yes. Investors may pursue FINRA arbitration claims to recover damages tied to misconduct or supervision failures.
What is the connection between American Portfolios and Osaic Wealth?
Advisor Group acquired American Portfolios in 2022 and later rebranded as Osaic Wealth. The firm’s prior regulatory issues remain part of its record.
