First Allied Securities Inc. lost a Finra arbitration claim Friday to two investors who received $2.66 million in damages stemming largely from the sale of nontraded real estate investment trusts and annuities.
The two claimants, Nancy and Ivan Mailhot, filed the claim against First Allied and two other broker-dealers in 2018, alleging negligence, misrepresentation, failure to supervise and other charges in the matter, according to the Financial Industry Regulatory Authority Inc. arbitration panel award.
Only First Allied Securities, which is one of the Cetera Financial Group broker-dealers, was listed as responsible for damages to the Mailhots, according to the panelists' decision, which gave no explanation for the award.
A spokesperson for Cetera Financial Group declined to comment Monday. An attorney for the Mailhots, Gary Menzer, did not return a call to comment.
In an unusual aspect of the investors' claim and the subsequent award, the $2.66 million of damages requested matched the amount the three arbitrators awarded. Most awards pay claimants a percentage of the amount requested.
The investors' claim centered on high commission products, nontraded REITs and annuities. Of the 12 investments listed in the award, six were REITs and four were annuities.
Supervision vice chair speaks following recent launch of AI adoption practices by regulators.
In an era of AI euphoria and market FOMO, getting back to basics with fixed income may be the most contrarian and most important move advisors can make.
Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.
Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.
Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
