Recent Report to SEC Notes Four Pending Disputes Against Sigma Financial
InvestmentNews reports that according to Sigma Financial Corp.’s recent Focus Report to the Securities and Exchange Commission (SEC), the firm is contending with four pending Financial Industry Regulatory Authority (FINRA) arbitration claims from customers alleging damages of approximately $4.5M. The broker-dealer noted that it has put aside nearly $652K should these claims result in settlements or awards.
Our broker-dealer negligence lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing clients who have suffered losses because of the negligence or fraudulent actions of a Sigma Financial broker. Call us at (800) 259-9010 today.
Independent Broker-Dealer Fined by SEC and FINRA
Established in 1983, Sigma Financial has nearly 600 registered representatives and advisors. It has 26 disclosures on its BrokerCheck record.
In 2019, the SEC ordered Sigma Financial’s registered investment advisor arm, Sigma Planning Corporation, to pay a $2.5M settlement to clients over violations related to mutual fund shares. The regulator found that the RIA did not disclose conflicts of interest, including that certain mutual fund investments it chose for customers had provided the firm with financial incentives.
FINRA also fined Sigma Financial $100K for supervisory deficiencies related to the sale of inverse, leveraged, and inverse-leveraged exchange-traded funds (ETFs). That fine came just five years after the self-regulatory organization (SRO) ordered the brokerage firm to pay $185K, also for supervisory deficiencies.
In 2016, the broker-dealer was fined $100K for overcharging customers and ordered to pay $92K in restitution by FINRA. The SRO said that the broker-dealer didn’t apply warranted sales waivers to certain unit investment trusts (UITs) when they were applicable.
Several Ex-Sigma Financial Brokers Have Been the Subject of Customer Disputes
- Frederick Randhahn for allegedly selling unapproved investments. A 2020 investor fraud claim involving him was settled for nearly $48K. A FINRA arbitration case making similar claims alleging the recommendation of unapproved investments while he was a Sigma broker in Utah was settled for $175K. Sigma Financial fired Randhahn in 2018. Randhahn was under investigation by SSEK Law Firm for allegedly selling $625K in Woodbridge promissory notes tied to the Woodbridge Ponzi Scam.
- Glenn Kendall was accused of charging excessive commissions to customers. That claim, requesting $40K in damages, was denied. Kendall is now an Ameritas Investment registered representative.
- Kathie Foreman was named in multiple customer disputes from her time as a Sigma Financial broker. Misrepresentations and unsuitability were among the allegations. Foreman is now a Calton and Associates broker.
Seasoned Broker-Dealer Fraud Law Firm
Brokerage firms can be held liable for the negligent or fraudulent actions of their brokers and investment advisors. Even if a firm has been held accountable by a regulator, it is important that you file your own civil claim to pursue damages for your losses.
Working with a knowledgeable securities law firm experienced in fighting broker-dealers on behalf of investors only maximizes your chances of a full financial recovery. If you suffered losses while working with a Sigma Financial broker, contact our team at SSEK Law Firm today.