PFS Investments Review: Disciplinary Actions and Customer Complaints
The White Law Group is investigating potential securities claims involving PFS Investments Inc. (CRD#: 10111/SEC#: 801-72263,8-26486), a broker-dealer headquartered in Duluth, Georgia. The firm has been the subject of multiple disciplinary actions by the Financial Industry Regulatory Authority (FINRA) and has employed registered representatives later barred from the securities industry for misconduct.
FINRA records show a pattern of supervisory failures, compliance violations, and inadequate oversight of brokers’ activities. These issues have, in some cases, led to significant investor harm. If you suffered losses while investing through PFS Investments, you may be entitled to pursue claims for recovery.
FINRA Regulatory Actions Against PFS Investments
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 and lawsuits involving PFS Investments.
FINRA AWC No. 2020068652701 – August 14, 2025
From August 2019 to July 2024, PFS Investments failed to supervise the application of mutual fund rights of reinstatement, causing $710,738.55 in excess charges and fees to customers. FINRA found violations of Rules 3110(a) and 2010. The firm was censured and ordered to pay full restitution. No fine was imposed due to extraordinary cooperation.
FINRA AWC No. 2022074939304 – July 12, 2024
Between April 2021 and March 2023, PFS Investments failed to enforce procedures requiring written disclosure of outside business activities (OBAs) by three representatives. One OBA was approved based solely on oral notice, and the firm ignored red flags, resulting in more than $33 million in OBA sales. FINRA cited violations of Rules 3110 and 2010, censured the firm, and imposed a $60,000 fine.
FINRA AWC No. 2011025791201 – February 19, 2013
From 2008 to 2011, PFS Investments failed to provide required account record information to certain non-platform clients and used an inadequate investor profile questionnaire that did not document the rationale for recommending mutual funds to customers with short time horizons. FINRA imposed a censure and a $100,000 fine for violations of SEA Rule 17a-3, NASD Conduct Rules, FINRA Rule 2010, and MSRB rules.
FINRA AWC No. 2008015413101 – March 9, 2010
Between January 2006 and December 2009, PFS Investments failed to retain copies of customized client receipt forms given to customers, in violation of SEC recordkeeping rules. FINRA cited violations of NASD Rules 3110 and 2110, Exchange Act Rule 17a-4, and FINRA Rule 2010. The firm was censured, fined $35,000, and ordered to correct its record retention deficiencies.
Former PFS Investments Brokers Barred by FINRA
All broker-dealers have a responsibility to adequately supervise their employees and to maintain procedures and systems to detect misconduct. There have been several cases of registered representatives employed by PFS Investments who were allegedly involved in broker misconduct and fraudulent activities.
Ronnie Dumag (CRD#: 4783585) – Barred June 13, 2024
FINRA alleged Dumag converted funds from an elderly client. He was registered with PFS Investments in Sacramento, California, since 2004. Dumag was permitted to resign during an internal investigation and later refused to provide testimony, resulting in a permanent industry ban.
Michael Archimede (CRD#: 5701306) – Barred January 22, 2024
FINRA alleged Archimede borrowed money from a customer in violation of firm policy. He resigned during an internal review and refused to provide testimony to FINRA. The regulator was investigating whether the loan was tied to a potential crypto asset investment made outside the firm.
Kevin Hobbs (CRD#: 4267482) – Barred March 9, 2023
FINRA found Hobbs engaged in private securities transactions (“selling away”) without firm approval, in violation of Rule 3280. Hobbs allegedly traded in third-party accounts, provided inaccurate information to FINRA, and was linked to multiple customer complaints involving unsuitable investment recommendations.
Desiderio Eloy Torrez (CRD#: 4759218) – Barred December 20, 2022
FINRA barred Torrez for failing to provide documents in a customer complaint investigation involving an alleged investment recommendation. He was registered with PFS Investments in San Diego, California, for over a decade.
Robert Frederick Genito (CRD#: 4760338) – Barred November 22, 2019
FINRA barred Genito after he refused to testify in an investigation into undisclosed outside business activity. His record includes multiple customer disputes—two involving unpaid promissory notes tied to his business—settled for a total of $85,000, a prior suitability complaint, and a civil judgment. He was registered with PFS Investments in Bonita Springs, Florida.
Derrick R. Trussell (CRD#: 5197550) – Barred December 3, 2018
FINRA barred Trussell after he failed to provide requested information. He was terminated in 2017 for alleged unapproved outside business activities and has multiple customer disputes and pending criminal charges, including securities fraud and money laundering. He was registered with PFS Investments in San Antonio, Texas.
Stephen Alan Hackett (CRD#: 4525059) – Barred January 25, 2010
FINRA found Hackett borrowed $9,000 from a client in violation of firm policy, failed to repay the loan, and refused to cooperate with the regulator’s investigation. He was a registered representative in Plant City, Florida.
Risks for Investors
Brokerage firms like PFS Investments have a duty to reasonably supervise their financial advisors to ensure compliance with securities laws and regulations. Failure to supervise can result in unsuitable investment recommendations, misappropriation of funds, and other forms of misconduct that may cause substantial financial losses.
If a firm does not have adequate supervisory systems in place—or fails to enforce them—investors may have claims to recover damages for losses sustained.
Investor Recovery Options
If you suffered investment losses due to actions or recommendations by PFS Investments or one of its advisors, you may be able to recover your losses through a FINRA arbitration claim. FINRA arbitration is a private dispute resolution process for customer-broker conflicts, offering a potentially faster and more cost-effective alternative to court litigation.
FINRA Arbitration vs. Class Action
It’s important to note that securities claims are generally handled through FINRA arbitration rather than class action lawsuits. While class actions can benefit large groups of investors with small, similar losses, FINRA arbitration allows for an individualized review of your case and can result in greater recovery depending on your circumstances.
Free Consultation with a Securities Attorney
If you believe you were harmed by misconduct at PFS Investments, The White Law Group may be able to help. We represent investors nationwide in claims against brokerage firms, including PFS Investments, for failure to supervise, unsuitable recommendations, and other forms of broker misconduct.
For a free consultation with a securities attorney, please call (888) 637-5510 or visit www.whitesecuritieslaw.com.
Frequently Asked Questions
1. What is PFS Investments?
PFS Investments is a broker-dealer based in Duluth, Georgia, offering investment and insurance products nationwide.
2. What types of claims can be filed against PFS Investments?
Investors may file claims for failure to supervise, unsuitable investment recommendations, misrepresentation, unauthorized transactions, and other violations of securities laws.
3. How do I know if I have a case?
An experienced securities attorney can review your account statements, transaction history, and communications with your advisor to determine whether you have a viable claim for recovery.
