First Allied Securities

Arizona Retirees Win $2.6M FINRA Arbitration Award Against First Allied Securities

Published on: March 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Cetera Broker-Dealer Unsuitably Recommended Non-Traded REITs to Retired Couple

Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm at investorlawyers.com) and Menzer & Hill, PA, are pleased to announce that a Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded our clients a $2.6M award against First Allied Securities. This includes $1.1M in compensatory damages, $818K in market-adjusted damages, more than $660K in legal fees, and $40K in other expenses.

This was a unanimous decision by the three-person panel of arbitrators, which awarded the retired couple the total amount they requested. The arbitration panel was just as troubled as our knowledgeable broker misconduct attorneys were about the actions of First Allied Securities and its financial advisors. First Allied is a Cetera Financial Group broker-dealer.

First Allied Securities Broker William Fox Accused of Making Unsuitable Alternative Investments Recommendations

Published on: April 29, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Texas Stockbroker Purportedly Earned High Commissions From Illiquid Alternative Investments

If you are an investor who was sold alternative investments by First Allied Securities broker William Fox, you may have grounds for an investor claim. Fox, an Austin, TX-based registered representative, has been accused by at least one customer, who already filed a Financial Industry Reguinveslatory Authority (FINRA) claim, of not performing the proper due diligence before recommending that the claimant invest over $2M in retirement funds in illiquid, poor quality alternative investments.

This included nontraded real estate investment trusts (nontraded REITs), annuities, private placements, equipment leasing, and oil and gas investments. The sale of these investments to the claimant resulted in Fox earning $140K in commissions and an investment advisory fee.

Shepherd Smith Edwards and Kantas Investigates Claims Involving Ex-First Allied Securities Broker Masood Azad

Published on: February 25, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Broker and First Allied Securities Accused in $1M Investor Fraud Case

Masood Husain Azad, a former Texas-based broker, is now the subject of an over $1M investor fraud claim. Also known as Mike Azad, he was fired by First Allied Securities in 2017. Now, First Allied Securities is a respondent in this Financial Industry Regulatory Authority (FINRA) arbitration case, which was brought by a customer.

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our broker fraud lawyers are offering a free, no obligation case assessment to former customers of Masood Azad who suffered investment losses that they suspect may be due to fraud or negligence. Contact SSEK Law Firm today.

Shepherd Smith Edwards and Kantas Investigates Ex-First Allied Securities Broker Shlomo Strugano

Published on: January 23, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Former First Allied Securities Rep. Accused of Inappropriate REIT Recommendations

Our investor lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are looking into claims by clients of former First Allied Securities stockbroker Shlomo Strugano. Strugano was barred by the Financial Industry Regulatory (FINRA) earlier this month.

Strugano, also known as Shlomy Strugano, is based in California. He has been the subject of at least four customer disputes, two of which are still pending. The ex-stockbroker is accused, among other things, of making inappropriate recommendations involving real estate investment trusts (REITS) to customers.

Retirement Losses: First Allied Securities and Financial Adviser to Pay Retirees Over $1.6M for Investment Advice, MetLife to Pay Another $189M to Individuals Owed Pensions, and Duke University Will Pay Over $10M to Settles Lawsuits Alleging ERISA Violations

Published on: February 4, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Investors Alleging Negligence and Mishandling of Their Retirement Funds Win FINRA Case

A Financial Industry Regulatory Authority (FINRA) panel arbitration is ordering First Allied Securities and financial adviser Larry Glenn Boggs to pay claimants and early retirees Nita and Mike Snow over $578K in compensatory damages, $500,000 in punitive damages, $350K in attorney’s fees, and $60K in other costs related to losses they sustained. Boggs had worked with the Snows on their early retirement plan, which included investing in the Sun America Life-issued variable annuity the Polaris Advantage II and other investments.

In their securities arbitration claim, the Snows sought compensation from Boggs, First Allied Securities, First Allied Advisory Securities, and American Retirement Solutions of Louisiana, LLC. All of them denied wrongdoing.

FINRA Awards more than $4M to Elderly Investors Bilked by Ex-First Allied Securities Broker

Published on: January 19, 2018 | by Shepherd Smith Edwards & Kantas, LLP

A Financial Industry Regulatory Authority arbitration panel has awarded over $4.3M to investors in their elder financial fraud case against former First Allied Securities broker Anthony Diaz. The plaintiffs contend that he invested their retirement funds in high risk private placement investments that were unsuitable for them. They are alleging inadequate supervision, misrepresentation and omissions, unsuitability, fraud, and other violations.

Diaz is considered to be a rogue broker by the regulator, who barred him in 2015. He not only worked at 11 firms win 14 years, but also he appeared to have no problem getting another job whenever he was let go from a previous. Diaz’s BrokerCheck profile shows that he is named in 53 customer dispute and regulatory disclosures.

The arbitration award to the investors is over $1M in compensatory damages, more than $413K in legal fees, and $2.9M in punitive damages. They settled with First Allied Securities last year.

Voya Financial Advisors, Cetera Advisors, and Six Other Broker-Dealers to Pay $12.5M in Fines and Restitution For Allegedly Not Properly Supervising The Sale of L-Share Variable Annuities

Published on: November 2, 2016 | by Shepherd Smith Edwards & Kantas, LLP

The Financial Industry Regulatory Authority is fining eight brokerage firms $6.2M for not supervising the sale of L-share variable annuities to customers. Five of the firms must pay another $6.3M to customers because the variable annuities that they were purchased were potentially not compatible with the latter’s investment goals and accounts.

The firms, and their sanctions, include: Voya Financial Advisors Inc., for $2.75M fine, First Allied Securities, Inc., for $950K fine, VSR Financial Services, for $400K fine, Cetera Financial Specialists LLC, for $350K fine, Cetera Advisors Networks LLC, for $750K fine, Summit Brokerage Services, Inc., for $500K fine, Kestra Investments, for $475K fine, and FTB Advisors, for $250K fine. The firms that have to pay restitution are: Voya, for $1.8M, while first Allied, Cetera Advisors Networks, VSR, and Summit Brokerage Services will collectively pay $4.5M. All the firms are settling, but they are not denying or admitting to any of the alleged claims.

At issue was the sale of the L-share annuities, which are “potentially incompatible, complex and expensive long-term minimum-income and withdrawal riders.” L-share annuities are more likely to pay registered representatives and their firms higher compensation than more traditional instruments.