IBN Financial Services – Investor Lawsuit Investigation
The White Law Group is investigating potential securities fraud claims involving IBN Financial Services, Inc. (CRD #42360), a FINRA-registered brokerage firm headquartered in Liverpool, New York. The firm has been the subject of multiple regulatory sanctions and supervisory failures, particularly tied to the sale of high-risk alternative investments, and two of its formerly registered representatives now face a major federal fraud case. Individuals who purchased securities through IBN Financial or its representatives may be entitled to pursue claims for recovery through FINRA arbitration.
About IBN Financial Services
Founded in 1997, IBN Financial Services is a FINRA-registered brokerage firm employing roughly 80 registered representatives across 25 branch offices. As of March 2024, the firm reported managing approximately $163 million in assets under management (AUM). Despite its long history, the firm has faced regulatory issues. FINRA BrokerCheck lists at least nine regulatory events for IBN, including sanctions, fines, and censures, many related to supervisory failures and the sale of risky alternative investments.
Update: Vincent Camarda Pleads Guilty to $160 Million Fraud Scheme; New SEC Charges Filed (April 2026)
On April 3, 2026, Vincent Camarda, chairman and CEO of A.G. Morgan Financial Advisors, pleaded guilty in the U.S. District Court for the Eastern District of New York to securities fraud and investment adviser fraud. Camarda faces up to 20 years in prison, restitution of at least $160,022,836, and forfeiture of $6,639,498, according to the U.S. Attorney’s Office for the Eastern District of New York.
The same day, the SEC filed a civil complaint against Camarda and his former chief compliance officer, James McArthur, alleging the two raised at least $138 million from at least 431 investors, many of them elderly, by selling promissory notes issued by five high-risk private equity funds that Camarda and McArthur created, managed, and owned. According to the SEC, four of the funds were represented to clients as diversified mining investments but were instead funneled into a single mining company, and the fifth was funneled entirely into a drive-through coffee startup owned by Camarda’s son; both businesses eventually failed to meet interest payments. The SEC also alleges Camarda misappropriated hundreds of thousands of dollars of investor funds for personal expenses, including plastic surgery, travel, jewelry, and luxury goods.
Camarda and McArthur were registered representatives with several broker-dealers between 2014 and March 2022, including LPL Financial, American Portfolio Services, Traderfield Securities, and IBN Financial Services. This new case is separate from, and in addition to, the 2022 SEC charges related to the Par Funding scheme described below.
2022 SEC Charges: Par Funding Scheme
In 2022, the SEC charged Camarda, A.G. Morgan Financial Advisors, and former IBN compliance officer James McArthur (CRD#: 2797856) in connection with the Par Funding scheme, a fraudulent offering that raised over $500 million. According to the SEC, Camarda and his firm allegedly:
- Raised more than $75 million from investors through unregistered promissory notes.
- Collected more than $7 million in compensation.
- Sold unapproved investments such as AGM Fund I and II, in violation of securities laws.
This type of conduct is known as “selling away,” where brokers improperly sell products outside the supervision of their broker-dealer, exposing investors to heightened risks of fraud and loss. McArthur was permitted to resign from IBN Financial Services in June 2022 amid these allegations.
Recent FINRA Sanctions Against IBN Financial
- January 29, 2025 – Reg BI Supervisory Failures: FINRA censured IBN and fined the firm $50,000 for failing to reasonably supervise a registered representative’s recommendations of speculative, illiquid alternative investments, including a non-traded REIT, to retail customers, and ordered the firm to certify that it had remediated its supervisory system. The Chief Compliance Officer was separately fined $5,000 and suspended from acting in a principal capacity for one month (February 18 through March 17, 2025), and was required to complete 20 hours of continuing education on Regulation Best Interest.
- January 2025 – Rep Suspension: IBN representative Angelo Piccone consented to findings that he willfully violated Reg BI by recommending 11 sales of speculative, illiquid alternative investments totaling $457,000, representing 77% of one retail customer’s account, and earning $23,905.81 in commissions. FINRA also found Piccone used his personal cell phone to exchange unapproved and misleading text messages with the customer, which the firm was unable to preserve as required. Piccone has three pending customer complaints.
- April 2022 – GPB Capital: FINRA fined IBN $45,000 and ordered restitution for selling GPB Capital private placements without disclosing audit delays. GPB was later exposed as a $1.7 billion Ponzi-like scheme.
- 2021-2022 – Supervisory Failures: IBN was fined $30,000 for failing to monitor outside business activities tied to private placements.
Broker Misconduct – Vincent Camarda & James McArthur
Vincent Camarda (CRD#: 2463703) has one of the more extensive regulatory records among brokers tied to IBN. FINRA BrokerCheck lists 23 disclosure events, including numerous customer complaints and arbitration awards. Allegations against Camarda include negligence, breach of fiduciary duty, and unsuitable recommendations. Many claims are tied to high-risk products such as GWG L Bonds, GPB Capital, and Par Funding. In April 2026, Camarda pleaded guilty to criminal securities fraud and investment adviser fraud tied to a separate $160 million scheme and faces up to 20 years in prison, in addition to the civil SEC charges described above.
James McArthur (CRD#: 2797856), a former compliance officer and IBN representative, also has a troubling history. BrokerCheck reportedly lists 14 customer complaints totaling over $18 million. Allegations include negligence, failure to supervise, and breach of fiduciary duty. McArthur resigned from IBN in June 2022 amid the Par Funding allegations and is currently barred from associating with any FINRA member firm; a second indefinite suspension was ordered in October 2025 after he failed to respond to FINRA information requests and satisfy an unpaid $1.4 million arbitration award. He was named alongside Camarda in the SEC’s April 2026 civil complaint over the $138 million private equity fund scheme.
Risks for Investors
- Unsuitable recommendations of alternative and private placement investments.
- Supervisory failures and conflicts of interest.
- Failure to disclose material risks to clients.
- Exposure to fraudulent schemes such as Par Funding, GWG L Bonds, GPB Capital, and the Camarda Funds.
Recovery Options – FINRA Arbitration vs. Class Action
Investors who suffered losses with IBN Financial Services or brokers such as Camarda and McArthur may be able to pursue recovery through FINRA arbitration. Arbitration often provides a faster and more efficient process than class action litigation. Broker-dealers may be held liable for failing to supervise financial advisors who engage in misconduct.
FAQs About IBN Financial & Vincent Camarda
What are the SEC charges against Vincent Camarda?
In 2022, the SEC accused Camarda, A.G. Morgan, and James McArthur of selling unregistered securities in the Par Funding scheme, raising over $75 million from investors. In April 2026, the SEC filed a separate civil complaint alleging Camarda and McArthur raised $138 million from more than 431 investors through five fabricated private equity funds. Camarda pleaded guilty to related criminal fraud charges the same day.
What does “selling away” mean?
Selling away occurs when a broker sells investments not approved by their firm, often exposing investors to greater risks of fraud and loss.
Can I recover losses from IBN Financial Services or Vincent Camarda?
Yes. Many investors may be eligible to file FINRA arbitration claims against IBN, A.G. Morgan, or associated brokers for supervisory failures and unsuitable recommendations.
What recent arbitration awards were issued against Camarda?
In August 2025, FINRA panels issued three separate awards against Camarda and McArthur totaling more than $6 million in damages and sanctions. McArthur is also currently the subject of an unpaid $1.4 million arbitration award.
Is IBN Financial Services responsible for the new Camarda Funds fraud allegations?
That remains to be determined. The conduct described in the SEC’s April 2026 complaint largely centers on A.G. Morgan Financial Advisors, though Camarda and McArthur were registered with IBN for part of the relevant period. Investors who worked with either broker while they were associated with IBN should have their accounts reviewed to determine whether IBN’s supervision, or lack of it, contributed to their losses.
Free Consultation with Securities Fraud Attorneys
If you invested with IBN Financial Services, Vincent Camarda, or A.G. Morgan Financial Advisors and suffered losses, you may have options to recover damages through FINRA arbitration. Contact The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group is a national securities fraud, arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
