The White Law Group is investigating potential securities claims involving First Allied Securities.  

First Allied Securities, a national financial advisory firm based in San Diego, Calif., ceased operating independently as of September 12, 2022, after merging into Cetera Financial Group. Cetera reportedly oversees approximately $322 billion in assets under administration and $115 billion in assets under management, as of December 31, 2022.  First Allied has a history of broker misconduct and disciplinary actions, according to the Financial Industry Regulatory Authority (FINRA).

First Allied was one of numerous independent broker dealers (Including Cetera), purchased by Nicholas Schorsch, and RCAP Holdings. As we have previously reported, RCAP holdings was part of a $23 million accounting scandal in October 2014.    

First Allied Complaints  

First Allied has  34 disclosures on its record for various regulatory issues, according to FINRA. The White Law Group continues to investigate potential claims involving First Allied and the liability the firm may have for improper investment recommendations to its clients. If you have suffered losses with First Allied, our securities attorneys may be able to help you.  

Disciplinary Actions   

On August 21, 2017, the firm was censured and required to remediate eligible customers for mutual fund sales-charge waivers. First Allied agreed to pay restitution to eligible customers, which is estimated to total approximately $876,915 (the amount eligible customers were overcharged, with interest).  

In November 2016, we reported that FINRA fined First Allied and four other Cetera firms for failure to supervise the sales of variable annuities products, according to its action notice. They were ordered to pay restitution to investors.  

Broker Misconduct  

FINRA reportedly barred former First Allied broker Chad Barancyk (CRD #4921433) on September 19, 2022. Eight of Barancyk’s advisory clients reportedly filed separate complaints alleging unsuitable investments and misrepresentation, among others.  Barancyk was affiliated with First Allied Securities in Naples FL from 11/17/2014 – 01/15/2021.  

In 2017 we reported that FINRA barred former First Allied broker Mike Azad after allegations of private securities transactions (selling away) and outside business activities. Five customers have reportedly filed customer complaints filed against him., according to his broker record. Allegations include unsuitable investments, among others.   

As we reported in February 2018, Anthony Diaz, a Pennsylvania stockbroker formerly registered with First Allied, was ordered to pay more than $4 million in damages ahead of his federal trial on criminal fraud charges.  

FINRA ruled that Anthony Diaz must pay damages to 19 former clients, noting he failed to respond to arbitration. The award includes compensatory damages of about $1 million, punitive damages of $2.9 million and attorneys’ fees of more than $400,000. Diaz was sentenced to more than 17 years in prison for defrauding clients by convincing them that a alternative investment products were low-risk investments.  

First Allied Lawsuits  

The White Law Group has represented numerous investors in First Allied lawsuits to recover investment losses.  

All broker-dealers have a responsibility to adequately supervise its representatives. They must ensure they have procedures and systems in place to detect broker misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.  

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.  

Free Consultation with a Securities Attorney  

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.  

Investors can file an arbitration claim or request mediation through FINRA when they have a dispute involving the business activities of a brokerage firm or one of its brokers. To be considered, the alleged act resulting in a claim must have taken place within the past six years. 

If you have concerns regarding investments you purchased through First Allied Securities and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.  

The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.  For more information on The White Law Group, visit www.whitesecuritieslaw.com.