Struggling broker-dealer Fintegra files for bankruptcy

Most brokers moving to Securities America in wake of $1.5 million arbitration award

Sep 24, 2015 @ 1:48 pm

By Mason Braswell

Fintegra, a Minneapolis-based broker-dealer that was hoping to be able to salvage its business after being hit with a $1.5 million arbitration award in June, was unable to stay afloat.

The firm, which worked with around 140 brokers, filed for bankruptcy on September 16, according to filings in U.S. Bankruptcy court in Minnesota. Fintegra reported it had assets of $1.8 million and liabilities of $2.6 million.

In June, the firm halted its securities business after a $1.5 million arbitration award tied to supervision of allegedly unsuitable sales of an unregistered security, Miasole Investments II. The award set the firm below its net capital requirements of at least $250,000.

The president of Fintegra, Doreen Weber, said in June that the firm was exploring options that would have allowed it to resume selling securities. The firm had brought in $18 million in revenue in 2014 and had brought in $9.6 million this year as of September.

On July 19, however, Fintegra entered into an agreement to move its advisers to Securities America Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. that has about 2,000 brokers.

Fintegra said that it was only able to pay $300,000 of the award, according to a complaint filed in July by the firm's customers in federal court in Minnesota.

Ms. Weber did not return messages seeking comment.

A spokeswoman for Securities America, Natalie Hadley, was not immediately able available to comment.

An attorney for the former clients, Randall K. Clavert of an eponymous firm in Oklahoma City, said that so far none of the award has been paid.

Other claims may still be pending against Fintegra. In the annual FOCUS report filing with the Securities and Exchange Commission, Fintegra said that it was subject of five separate lawsuits “which claim securities sold through their registered representatives were either unsuitable or in violation of state securities laws."

The company was defending itself against the allegations and did not believe it was at fault, according to the filing.

News of the bankruptcy was first reported in the Minneapolis/St. Paul Business Journal.


What do you think?

View comments

Most watched


Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.


Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.

Latest news & opinion

The growth of factor-based investing

Advisers are making decisions about clients' portfolios by using the same characteristics that govern factor-based ETFs.

Finra makes its list to target hundreds of rogue individuals

The regulator sees patterns in the behavior and disclosures of high-risk brokers.

LTC insurer offering co-pays to blunt soaring premium increases

John Hancock policyholders would get a discount on their premium in return for agreeing to pay a bigger portion of their claims in the future.

Goldman Sachs acquires United Capital

After a payday of $75 million or more, CEO Joe Duran plans to join Goldman in a senior position.

Private equity loves IBDs, but will that last?

Three big acquisitions in less than a year signals renewed life in the formerly beleaguered industry.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print