Securities America Inc. – Regulatory History Review
The White Law Group is reviewing the regulatory history of Securities America Inc., a brokerage firm headquartered in La Vista, Nebraska. Securities America, a subsidiary of Advisor Group, is among eight firms rebranding to Osaic Wealth. The firm has been a FINRA member since 1981 and currently employs approximately 3,700 registered representatives across 2,100 branch offices.
According to FINRA BrokerCheck (CRD#: 10205/SEC#: 8-26602), Securities America has a long record of regulatory actions and customer complaints. The firm reportedly has 89 disclosure events. These sanctions often involve supervisory failures, improper product sales, and restitution to harmed investors.
Regulatory Actions Involving Securities America Inc.
- March 14, 2024 – FINRA AWC (Cybersecurity & Supervisory Failures): Sanctioned for failing to maintain adequate supervisory systems and cybersecurity protections. The firm allegedly relied on weak data controls, resulting in multiple breaches and exposure of sensitive customer information.
- January 2023 – FINRA AWC (529 Plan Waivers): Found to have failed to ensure customers received sales charge waivers or correct share classes when rolling over 529 plans. Ordered to pay $122,845.59 in restitution plus interest.
- March 29, 2021 – FINRA AWC (LJM Fund Sales): Censured and fined $100,000 for supervisory failures tied to recommendations of the high-risk LJM Preservation & Growth Fund, which collapsed in 2018 and caused significant investor losses. The firm also paid $235,979.77 in restitution.
- April 2018 – SEC Settlement (Mutual Fund Share Classes): Settled charges for breaching fiduciary duties by failing to disclose conflicts of interest. The firm placed advisory clients in higher-cost mutual fund share classes despite cheaper alternatives being available.
- March 2017 – SEC/State Restitution (Medical Capital Holdings): Ordered to pay a final $1 million in restitution related to the $1.7 billion Medical Capital Holdings Ponzi scheme. Securities America was the largest seller of MedCap notes, placing $697 million with investors and collecting $26 million in commissions.
- July 2016 – FINRA AWC (Mutual Fund Waivers): Sanctioned for failing to ensure retirement plan and charitable organization clients received mutual fund sales charge waivers. Ordered to pay $1.54 million in restitution to approximately 1,500 affected customers.
Broker Misconduct and Customer Complaints
In addition to firm-level sanctions, multiple Securities America brokers have faced serious disciplinary actions:
- April 2023 – Michael Raineri (Seattle, WA): FINRA barred Raineri for allegedly converting at least $135,000 of customer funds.
- February 2019 – Hector May (New York, NY): The SEC barred May for operating a $7.9 million Ponzi scheme with his daughter.
- September 2019 – Bobby Wayne Coburn (Fort Meade, FL): FINRA barred Coburn for failing to cooperate with an investigation into unapproved securities transactions and related misconduct.
These cases underscore the risks for investors when brokerage firms fail to properly supervise their representatives.
Potential FINRA Claims to Recover Investment Losses
The White Law Group represents investors nationwide in FINRA arbitration claims against brokerage firms like Securities America. If your broker recommended unsuitable investments, failed to disclose risks, or engaged in misconduct, you may be entitled to recover your losses. Our attorneys can evaluate your situation, prepare a strong claim, and represent you throughout the arbitration process.
For a free consultation, call The White Law Group at (888) 637-5510 or visit us at whitesecuritieslaw.com.
Frequently Asked Questions
Why does Securities America have so many regulatory actions?
The firm has a long history of supervisory lapses, product sales violations, and compliance failures. Regulatory actions often reflect systemic oversight issues rather than isolated incidents.
What should I do if I invested through Securities America (now known as Osaic Wealth) and lost money?
You may be able to pursue a claim through FINRA arbitration. These cases are often handled individually against the brokerage firm that sold the investment.
Can The White Law Group help me recover losses?
Yes. Our firm has handled over 800 FINRA arbitration cases and represents investors nationwide in claims involving securities fraud, unsuitable investments, Ponzi schemes, and broker misconduct.
