The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding the Nebraska-based brokerage Allstate Financial Services (CRD# 18272).
Allstate Financial Services is an independent broker-dealer registered in fifty-one US states and territories. Formed in 1999, Allstate is incorporated in Delaware and based in Lincoln, Nebraska; Wilford James Kavanaugh serves as its Manager, President, Chairman of the Board, and Chief Executive Officer. Allen Ralph Reed serves as Vice President and General Counsel, and John Douglas Boudreau serves as Chief Compliance Officer and Executive Representative.
According to its BrokerCheck report, Allstate Financial Services is the subject of two regulatory sanctions and one customer complaint.
In 2011 a customer alleged Allstate Financial Services engaged in misrepresentation, breach of fiduciary duty, and omission of material facts relating to an investment in mutual funds. The complaint evolved into arbitration and resulted in a $255 award against Allstate.
FINRA rules and federal securities law stipulate that brokerage firms like Allstate Financial Services may not omit or misrepresent material facts pertaining to the product in a manner that might cause clients to make unsuitable investments. Firms also have a supervisory duty to ensure that their brokers comply with suitability regulations. Brokers and firms who engage in misrepresentation and/or unsuitability may be subject to disciplinary action.
In 2004 the National Association of Securities Dealers (NASD) filed a complaint against Allstate Financial Services. The complaint alleged Allstate violated NASD rules and bylaws by filing 130 late amendments to Form U4, representing ~44% of required amendments dealing with customer complaints and other disclosures. NASD additionally alleged that Allstate Financial Services lacked an adequate supervisory system to comply with Article V reporting regulations. Allstate was censured and issued a penalty of $150,000.
In 2002 the Florida Division of Securities sanctioned Allstate Financial Services following allegations that the firm operated unregistered branch offices. Allstate was censured and issued a penalty of $21,300.
If you have lost money investing with Allstate Financial Services, you may be qualified to recoup your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency, which means we only get paid if and when you recover money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.