Arete Wealth Management: Complaints and Regulatory Actions  

 Arete Wealth Management Regulatory Review

The White Law Group reviews the regulatory history and customer complaints involving Arete Wealth Management, LLC (CRD#: 44856 / SEC#: 8-50854).

Arete Wealth Management, headquartered in Chicago, Illinois, is a dual-registered brokerage and investment advisory firm. With 230 financial advisors across 49 offices, the firm partners with more than 50 alternative asset managers and sponsors. According to FINRA, the firm does business under the names ARETE WEALTH MANAGEMENT, LLC, KEYSTONE SECURITIES, LLC, and KEYSTONE INVESTMENT ADVISORS, LLC.

The company’s FINRA BrokerCheck report reflects six disclosure events, including two regulatory matters, one civil event, and two arbitrations.

SEC Fraud Charges Against Arete and Affiliates

January 17, 2025: The SEC filed a lawsuit against Arete Wealth Management LLC, Arete Wealth Advisors LLC, and several representatives, including Joey Miller, Jeff Larson, and Randy Larson, alleging fraud in connection with the unapproved sale of more than $8 million of Zona Energy Inc. shares between 2018 and 2020.

According to the SEC, the defendants misled investors, concealed transactions through unauthorized communication channels, and received discounted shares in exchange. Arete’s chief compliance officer was accused of orchestrating misleading settlement agreements to waive investor claims. Another seller, Michael Sealy, settled with the SEC and accepted penalties and a temporary ban from penny stock offerings.

Investor Settlements and Arbitration Cases

Arete Wealth disclosed more than $1.1 million in investor settlements during the first quarter of 2024, according to Investment News (April 15, 2024). The firm also received nearly $987,000 in insurance reimbursements under its errors and omissions policy.

Much of the litigation stemmed from a terminated advisor. Arete’s 2021 acquisition of Center Street Securities also drew scrutiny, particularly since Center Street representatives were significant sellers of GWG Holdings bonds, which became worthless following GWG’s 2022 bankruptcy.

The firm faced a $75,000 arbitration loss in February 2024 and a $515,000 arbitration claim in 2021 related to GPB Capital Holdings private placements, which remain under receivership.

Complaints Related to GWG L Bonds

The White Law Group has represented investors against Arete Wealth Management for its sale of GWG L Bonds.

In June 2022, a California family filed a FINRA arbitration claim alleging fraud, breach of fiduciary duty, and negligence after suffering losses tied to GWG L Bonds, Healthcare Trust Inc., and Franklin BSP Lending Corp. The case sought damages between $100,000 and $200,000.

In October 2022, a second claim was filed against Arete Wealth for GWG L Bond losses, seeking damages between $50,000 and $100,000.

GPB Capital Lawsuits Involving Arete

In February 2021, Arete Wealth lost a $515,000 arbitration claim tied to GPB Capital Holdings, which raised $1.8 billion from investors beginning in 2013. GPB stopped paying investor distributions in 2018 and has been accused of operating a Ponzi-like scheme.

Arete investors alleged the firm recommended risky, illiquid, and high-commission GPB Automotive Portfolio investments, while engaging in negligence, negligent supervision, and misrepresentation.

Broker Misconduct and Disciplinary History

Jonathan Greenfield – Barred Broker

FINRA barred former Arete representative Jonathan Jay Greenfield (CRD #2591266) in 2016. His record shows 20 regulatory events, including 16 customer complaints and criminal charges related to wire fraud. Greenfield was accused of making material misrepresentations and omissions when selling renewable secured debentures.

FINRA Sanction Against Arete

In 2012, FINRA censured and fined Arete Wealth $25,000 for inadequate due diligence on a private offering. The regulator found that the firm relied too heavily on issuer representations within a private placement memorandum without sufficient independent verification.

Further investigation revealed misrepresented educational credentials, false involvement by legal and accounting firms, and allegations of fraud by fund owners.

Supervision Duties of Brokerage Firms

Broker-dealers such as Arete Wealth Management are required by law and regulation to properly supervise their advisors. FINRA and SEC rules mandate that firms monitor for misconduct and red flags. Failure to do so can make the firm directly liable for customer losses.

Investor Recovery Options

Investors harmed by misconduct at Arete Wealth may have two main recovery paths:

• FINRA Arbitration – More common for individual investors with claims exceeding $100,000.

• Class Action Lawsuits – Typically pursued when multiple investors have smaller claims.

Speak with a Securities Attorney

The White Law Group has more than 30 years of experience handling securities fraud and investor protection cases nationwide. Since 2010, the firm has handled over 800 FINRA arbitration claims on behalf of investors.

With offices in Chicago, Illinois, and Seattle, Washington, The White Law Group represents investors in all 50 states.

Free Consultation: If you lost money with Arete Wealth Management, call The White Law Group at 888-637-5510 for a free case evaluation.

FAQs – Arete Wealth Management

What types of investments has Arete Wealth Management sold?

Arete has focused heavily on alternative investments such as private placements, GPB Capital funds, and GWG Holdings bonds, many of which have led to significant investor losses.

Can I recover my investment losses through FINRA arbitration?

Yes. Investors may be able to pursue FINRA arbitration claims if they suffered losses due to unsuitable recommendations, misrepresentation, or lack of supervision by Arete Wealth Management.

How long do I have to file a claim?

Deadlines vary depending on the type of claim and jurisdiction. It is important to contact a securities attorney as soon as possible to ensure your rights are preserved.