Avantax Investment Services Regulatory Overview
The White Law Group reviews the regulatory history of Avantax Investment Services (formerly HD Vest Investment Services).
Avantax Investment Services, (CRD#: 13686/SEC#: 8-29533) Dallas, Texas) is a mid-sized broker-dealer based in Dallas, Texas. The company has offered brokerage and investment advisory services under the following names: 1st Global, HD Vest Investment Services, HD Vest, Avantax Wealth Management and Avantax Investment Services.
HD Vest Financial Services reportedly rebranded with 1st Global to become Avantax Wealth Management on September 16, 2019.
Cetera Financial Group reportedly acquired Avantax in a cash deal worth $1.2 billion in November 2023. The acquisition made Avantax a private company and a division of Cetera.
Avantax Investment Services: Regulatory Actions
Regulatory actions taken against a broker-dealer may include censures, fines, suspensions and restitution, among others. They can have serious consequences for a broker-dealer’s profile and reputation. The following is a review of FINRA and the SEC’s regulatory actions involving Avantax Investment Services
Avantax Investment Services reportedly has 21 disclosure events on its CRD/ broker report, including 16 regulatory events and 4 arbitrations.
August 2023: Avantax was reportedly fined $5,000 by the Maine securities regulators for failure to conduct on-site branch inspections.
September 2022: Vermont securities regulators reportedly fined Avantax $60,000 for supervisory failures related to a representative’s outside business activities and failure to maintain written supervisory procedures.
November 2016: FINRA reportedly censured Avantax and ordered restitution for customers after they were overcharged on mutual funds in the amount of $261,905.
July 2016: FINRA reportedly censured and fined HD Vest Investment Services $100,000 for alleged supervisory failures from 2010 to 2015, including not updating representatives’ Forms U4 with bankruptcies, judgments, and liens. The firm also reportedly failed to report customer complaints and a settlement in a timely manner. Additionally, it allegedly lacked proper oversight of variable annuity transactions, approving trades without verifying key suitability information. These violations resulted in breaches of FINRA and NASD rules, including those related to supervisory procedures, reporting requirements, and transaction suitability.
January 2013: HD Vest was censured and fined $50,000 for violating NASD Rules 3010 and 2110. FINRA Rule 2010, and FINRA By-Laws, Article III, Section 3 for failing to respond to, or conduct appropriate follow-up regarding, 25 Disclosure Letters that it received from FINRA’s Central Registration Depository, which allowed four statutorily disqualified individuals to register or associate with the Firm.
Broker Misconduct and Customer Complaints
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. There have been several cases of registered representatives employed by Avantax Investment Services who were allegedly involved in broker misconduct and fraudulent activities.
April 2019: Thomas H. Laws, a former HD Vest broker, was reportedly barred by FINRA for refusing to testify in an investigation regarding undisclosed business activities and private securities transactions. The SEC also investigated him for allegedly misappropriating $1.1 million from Santa Fe Gold Corp., where he was CEO. He reportedly misused investor funds, fabricated documents, and failed to fully repay a $930,000 promissory note. Santa Fe raised $6.8 million from unregistered securities after emerging from bankruptcy in 2016.
June 2019: An HD Vest broker in Waco Texas was suspended for 18 months and fined $20,000 after FINRA found that he made unsuitable investment recommendations in the 401(k) and IRA retirement accounts of customers. The findings stated that the broker over concentrated the customers’ accounts in high risk, speculative oil and gas – energy sector securities -, and also recommended that one customer purchase and hold a leveraged inverse exchange-traded note, which was only meant to be held for one trading day, in his 401(k) retirement account for nearly 16 months. His investment recommendations were unsuitable for each customers based on the customer’s financial situation and needs, risk tolerance, investment experience, and investment objectives. The customers suffered over $407,000 in trading losses as a result.
Potential Lawsuits to Recover Investment Losses
The White Law Group represents investors in FINRA lawsuits against their broker dealers. If you have suffered losses due to broker negligence or broker fraud, we can help. When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option for you than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
How to Recover your Investment Losses
If you have suffered losses investing with Avantax Investment Services, please call The White Law Group at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 800 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
Our firm has over 30 years of securities law experience, and can help you recover your investment losses. With offices in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country.
Last modified: February 11, 2025
