Headquartered in Atlanta, Georgia, FSC Securities is now part of the Advisor Group network. With more than 7,000 affiliated advisors in hundreds of branch offices all over the United States, FSC Securities is both a registered broker-dealer and investment adviser firm. It was an American International Group (AIG) subsidiary until 2016.
Our brokerage firm arbitration attorneys represent investors who have suffered investment and bond losses because of the negligent actions of FSC Securities financial advisors. In 2022, Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the broker-dealer on behalf of a retiree who suffered losses in NorthStar Healthcare Income REIT and FS Energy and Power Fund. We are also continuing to investigate FSC Securities over possible investor losses involving GPB Capital Holdings, which is accused of operating an over $1.8B Ponzi scam.
If you are an investor who worked with an FSC Securities broker and would like to explore whether you have grounds for a FINRA arbitration claim to pursue damages for your losses, contact SSEK Law Firm today.
Recent Regulatory Filings Involving FSC SecuritiesAccording to FSC Securities's CRD, the firm has fifty-three disclosures, including twenty-nine regulatory events and over a dozen arbitration claims. Here are examples of some of the regulatory events:
July 2018: FSC Securities was one of eight brokerage firms ordered to pay a collective $8.7M in fines and restitution by FINRA for their alleged failure to properly supervise and educate their brokers about variable annuity (VA) sales. As a result, L-share variable annuities with shorter surrender periods were improperly sold to customers with long-term investing goals. FSC Securities paid $200K.
August 2017: FINRA fined the brokerage firm $100K for allegedly failing to supervise the sale of inverse and leveraged exchange-traded funds. This resulted in customers purchasing 6,500 ETFs worth about $92M in 1400 accounts. Meanwhile, FSC Securities earned about $603K in commissions. As part of resolving the case, the broker-dealer agreed to repay clients more than $492K.
March 2016: FSC Securities, which was an AIG subsidiary at the time, and two other AIG firms agreed to pay over $9.5M to settle US Securities and Exchange Commission (SEC) charges accusing them of directing customers toward more costly mutual funds so that they could earn more than $2M in extra fees. Despite settling, none of the broker-dealers admitted to or denied the findings.
Like many independent broker-dealers, FSC Securities registered representatives usually operate as their businesses and have no onsite supervision. Unfortunately, even with Offices of Supervisory Jurisdiction (OSJs) to remotely monitor these financial advisors, this type of oversight from brokerage firms may not be enough and can allegedly enable broker negligence and misconduct.
Examples of a Few FSC Securities Brokers Who Have Recently Been Involved in Customer DisputesFrank Briseno in Metairie, Louisiana, has been an FSC Securities broker and registered investment adviser since 2004. In 2019, FSC Securities settled with one of its former customers for $3.5M, an investor claim accusing Briseno of unsuitability. The client had requested $5K in damages.
Ex-FSC Securities financial advisor Barry Hartman was barred from the industry in 2015. He has twenty-eight disclosures, including at least twenty-three customer disputes. Some of these claims are still pending. The FINRA arbitration claims allege unsuitability, unauthorized trading, breach of fiduciary duty, negligence, and broker fraud.
Former FSC Securities broker Brian Presley worked out of Punta, Florida. He has nine customer disputes on record, most of which were settled. Presley's former clients accused him of misrepresentations, negligence, and unsuitability.
These are just three FSC Securities financial advisors who have come under scrutiny in the wake of customer complaints over the years.
Skilled Securities Lawyers Representing Investors Against FSC SecuritiesFor over 30 years, SSEK Law Firm has fought for investors to recover their investment and stock losses from the firms and their brokers that should be held liable. Contact us online or call