Category Archives: Cetera Financial Group

Kendall J. Groom- Former Independent Financial Group Broker- Barred From Securities Industry- Fresno, CA

January 2020- Fresno, CA

The FINRA records of Kendall J. Groom  , a broker previously employed  by  Independent Financial Group disclose  a regulatory event resulting in his bar from the securities industry.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In August 2019, Groom was permanently barred from the securities industry by the Securities and Exchange Commission after allegations that as trustee he diverted approximately $460,000 of the trusts’ assets to brokerage, advisory, and bank accounts that he owned or controlled.

In addition to the bar from the industry, he was ordered to disgorge over $262,000 and pay penalties and interest in excess of $200,000.

Groom worked for Independent Financial Group from December of 2016 to August of 2019.   From November of 1999-December of 2016, he worked for Cetera Financial . Groom discloses a business affiliation with Groom, McCormick LLP, an accounting firm.

If you have problems in an account  handled by Kendall J. Groom  call for a no charge consultation .

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Robert Edward Burns- Cetera Broker-Discloses Customer Disputes-Greenwood Village, CO

January 2020- Greenwood Village, CO

The FINRA records of Robert Edward Burns, a stockbroker employed by  Cetera Advisor Networks disclose a pending customer dispute and  a prior customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In August 2018 a  customer of Burns’ prior employer ,VSR Financial Services, Inc.; Summit Brokerage Services, was paid $150,000 in FINRA case #18-02447 to  resolve allegations that Burns made unsuitable investments in real estate securities and UDF IV.

In pending FINRA case #19-02163,  a VSR Financial Services, Inc.; Summit Brokerage Services, customer alleges overconcentration and unsuitable investments in alternative products as well as alleging that the firm failed to do due diligence on the alternative investments and is seeking $500,000 in damages.

For more information regarding the recovery of losses on alternative investments purchased from the now defunct VSR Financial Services, see this. 

Burns  has been employed by Cetera Advisors since September of 2019.   From September of 2016 until September of 2019, he was with Summit Brokerage Services and from September of 2016 until November 2016 he was with VSR Financial Services.

If you have questions about an account  handled by Robert Edward Burns Summit Brokerage, VSR Financial or Cetera Advisor Networks call for a no charge consultation to learn more about your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Scott Shoup-Cetera Advisor Networks Broker-Discloses Customer Disputes-Sewickley, PA 

September 2019- Sewickley, PA

According to publicly available records Scott Eugene Shoup (CRD#1874559) , a  stockbroker who is currently registered Cetera Advisor Networks,  disclose 1 pending and 4 final customer disputes.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

From 6/ 2004 to 5/2005,  4 clients of Financial Investment Analysts filed customer disputes with allegations including: breach of contract, negligence, breach of fiduciary duty, misrepresentation, non-disclosures, unauthorized trading, omission of facts, suitability and fraud.  Total settlements paid on these cases was about $147,000.

In October of 2015, a Cetera Advisor Networks customer filed a claim in the Court of Common Pleas in Westmoreland County, PA, alleging forgery of securities and misrepresentation or misleading information.    The claim alleges that Shoup had the client’s name removed from monthly distributions from a joint annuity and that her husband was forging her name on the checks.   The client is seeking $500,000 in damages in this pending matter .

Shoup has been employed by Cetera Advisor Networks since 9/2013  He was registered with Walnut Street Securities from 2004 until 2013.     Shoup discloses a business affiliation with Vicus Capital, Inc.,  and Pennsylvania Financial Group (PFG) in State College, PA. 

If you have questions about an investment account handled by Scott Eugene Shoup contact us for a no charge consultation to learn about your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Cetera Advisors Charged With Defrauding Retail Clients

September 2019

Cetera Advisors, a registered investment advisor and broker-dealer based in Denver, Colorado, was charged by the Securities and Exchange Commission (SEC) with breaching its fiduciary duty and defrauding retail clients out of more than $10 million in undisclosed commissions in connection with the sale of mutual funds.

According to the SEC,  Cetera representatives continuously recommended that clients invest in funds on the Cetera platform that cost the clients more than other less expensive, identical investments that are available.

The SEC alleges that Cetera put clients’ money into mutual fund share classes that charged 12b-1 fees when Cetera knew that the clients could have invested in lower cost shares of the same funds without those fees. These violations, which netted Cetera nearly $11 million to which it was not entitled,  occurred from at least 9/2012-12/2016.

Cetera Financial Group, with about 8,000 advisors and reported revenues of $1.6 billion in 2016,  includes the following firms:

  • Cetera Advisors
  • Cetera Advisor Networks
  • Cetera Financial Specialists
  • Cetera Financial Institutions
  • First Allied 
  • Summit Brokerage Services

Cetera Corporate offices are located in El Segundo, CA, Boca Raton, FL, Denver, CO, San Diego, CA, St. Cloud, MN and Schaumburg, IL.

If you have questions about an investment account handled by one of the Cetera firms,  contact us for a no charge consultation to learn about your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Summit Brokerage Services Sanctioned for Churning Accounts-Boca Raton, FL

July 2019-Boca Raton, FL

Wealthmangement.com reports that Summit Brokerage Services, an independent broker dealer headquartered in Boca Raton, FL,  will close it doors and roll its business up into an affiliated broker dealer, Cetera Advisor Network.

Summit Brokerage reports having 450 advisors and $17.5 billion in client assets.

According to FINRA records, Summit Brokerage discloses 15 prior regulatory matters. Most recently in July 2019, Summit Brokerage was censured by FINRA, fined $325,000 and ordered to pay restitution to customers of $558,296, plus interest, to resolve various allegations related to supervision of the firm’s brokers. The supervisory deficiencies include a broker who excessively traded customer accounts which generated over $650,000 in commissions.

If you have losses in an account at Summit Brokerage Services, call for a no charge consultation to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870