Independent Financial Group: Complaints & Regulatory Actions

Independent Financial Group Lawsuits, Sanctions, & Customer Complaints

Have you suffered investment losses with Independent Financial Group? The White Law Group is investigating potential FINRA arbitration claims involving the firm and its registered representatives.

Independent Financial Group, LLC (CRD#: 7717/SEC#: 801-62667,8-22870)  is a dually registered broker-dealer and investment advisory firm headquartered in San Diego, California. According to FINRA BrokerCheck, the firm has 17 disclosure events, including regulatory actions and arbitrations, many involving unsuitable investment recommendations, failure to supervise, and overconcentration in alternative investments.

Regulatory History of Independent Financial Group

Excessive Trading & Regulation Best Interest (Reg BI) Violations

September 25, 2024 – FINRA fined Independent Financial Group $500,000 and issued a censure for failing to supervise actively traded accounts and enforce Reg BI. One representative excessively traded five customer accounts between July 2020 and December 2022. IFG also delayed and gave incomplete responses to FINRA inquiries.

529 Plan Supervisory Failures

November 27, 2024 – IFG was fined $75,000, censured, and ordered to pay restitution for failing to supervise 529 plan rollovers. Due to poor internal procedures, some clients missed eligible sales charge waivers, violating MSRB Rule G-27 and Reg BI.

Failure to Supervise – $2.2M in Trading Losses

September 13, 2024 – An IFG Vice President of Supervision was suspended and fined for failing to act on red flags of excessive trading. A 77-year-old client reportedly incurred over $490,000 in trading costs and $550,000 in losses.

Unsuitable Private Securities – $1 Million Award

December 2023 – A FINRA arbitration panel awarded $1 million to an elderly couple and their entities after finding IFG and broker Armando Roman liable for unsuitable private placement investments.

Earlier Sanctions

• April 8, 2021 – FINRA fined IFG $200,000 for failing to supervise a rep who concentrated retirement funds in illiquid and speculative securities.
• September 2019 – The SEC charged IFG for not disclosing 12b-1 fee conflicts, resulting in $1.4 million in disgorgement and interest.

Independent Financial Group Broker Misconduct & Customer Complaints

• Brett Hartvigson (CRD#: 2263087): Barred in February 2024 for refusing to cooperate with a FINRA investigation. He has 9 disclosures, including a $499,000 pending complaint and a $350,000 settlement involving alternative investments. Registered with IFG from 2009–2023.
• Jon Richard Pariser (CRD#: 2755015): Barred in 2018 for failing to cooperate in an investigation involving referrals to unregistered individuals. He has 12 disclosures and over $2.6 million in reported settlements involving fraud and unsuitable investments.
• Excessive Trading Case – October 2023: An IFG rep in Santa Maria, CA was suspended for 18 months and fined after excessively trading elderly customer accounts. Customers lost $2.22 million while the firm and rep earned over $2.24 million in commissions.
• James Lamont: Former IFG broker with 27 disclosure events, including 14 customer complaints alleging misrepresentation and unsuitable investment advice. Barred by FINRA in 2020.
• Shawn Davis: Involved in a 2019 California lawsuit (Case No. S-CV-0042532) for alleged misrepresentations about alternative investments. Davis had 12 customer complaints during his time with IFG (2014–2017).
• Kyusun “Kenny” Kim: Barred by FINRA in 2018 for recommending speculative and illiquid products to senior clients. Allegedly falsified client net worth information. Kim had 23 customer complaints.

Frequently Asked Questions (FAQs)

1. What types of claims are filed against Independent Financial Group? Most claims involve unsuitable investments, failure to supervise, excessive trading, and illiquid alternative products.

2. Can I sue Independent Financial Group for investment losses? Yes. You may be able to file a FINRA arbitration claim if broker negligence or misconduct caused your losses.

3. Is FINRA arbitration better than a class action lawsuit? For claims over $100,000, FINRA arbitration is often a more effective recovery route than joining a class action.

Recovery Options for Investors

Broker-dealers like Independent Financial Group have a legal obligation to supervise their representatives. If they fail in this duty and investors suffer financial harm, they may be held liable through FINRA arbitration.

If you invested with Independent Financial Group and have concerns, contact The White Law Group at 888-637-5510 for a free consultation.

We are a national securities fraud and investor protection law firm with offices in Chicago and Seattle, representing investors across the country.