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Broker Complaints: INVEST Financial Corporation (CRD# 12984)

Fitapelli Kurta is investigating customer complaints stemming from investments made through INVEST Financial Corporation.

INVEST Financial Corporation is a full service broker-dealer firm with offices in all fifty states. INVEST Financial Corporation was formed in Delaware in 1982 and its current headquarters are located in Tampa, Florida. INVEST Financial Corporation is registered with both the SEC and FINRA and employs over 1,000 full time financial advisors nationwide.

In 2005, INVEST Financial Corporation was fined $1.5 million dollars. On September 9, 2005 INVEST Financial Corporation, SII Investments, National Planning Corporation and Investment Centers of America each entered into a letter of acceptance, waiver, and consent (AWC) with FINRA, stemming from improper means of receiving commissions. According to the AWC, INVEST Financial Corporation, Investments, National Planning Corporation and Investment Centers of America all maintained a “shelf space” program which, in return for a fee, gave preferential treatment to those members of the program. The members would receive preferential treatment in the form of placement of materials on the firm’s websites, inclusion of links to the sponsor’s websites, and inclusion of the funds in certain marketing materials prepared by INVEST Financial Corporation, SII Investments, National Planning Corporation and Investment Centers of America. The firms above received $12.54 million in commissions as a result of these “fees” associated with running this fund and none of the firms ever actually executed any trades for the fund complexes. INVEST Financial Corporation’s $1.5 million dollar fine was the largest of the group.

In 2006, INVEST Financial Corporation was fined $10,000 for failing to accurately report customer trade prices and sending customers written trade confirmations that contained falsely stated INVEST Financial Corporation was acting as an agent, when it was in fact acting as principal.  

While INVEST Financial Corporation has a history of customer complaints, as well as FINRA violations, what is most notable is the amount of arbitrations INVEST Financial Corporation has been party to. INVEST Financial Corporation has been a party to 20 FINRA/NASD arbitrations since opening its doors in 1982.

In 1996, INVEST Financial Corporation was ordered to pay over $41,000 to a customer as a result of arbitration stemming from unsuitable REIT (Real Estate Investment Trust) investments.

Later that year, INVEST Financial Corporation was fined $20,000 for failing to maintain a supervisory manual and failure to comply with books and records requirements.

In 1991, INVEST Financial Corporation had a $49,600 arbitration award entered against it for complaints of misrepresenting of material facts, and unsuitable investment recommendations.

Later that year, INVEST Financial Corporation was ordered to pay another $25,000 as a result of arbitration, to a customer who had filed a complaint alleging, among other things, INVEST Financial Corporation made unsuitable investment recommendations, misrepresented material facts, and breached its fiduciary duty to the customer.

If you or someone you know has fallen victim to any corrupt broker practices at INVEST Financial Corporation as a result of bad investments recommended by INVEST Financial Corporation. or any of its brokers, you may be entitled to full recovery of your losses.

Our firm prosecutes cases on behalf of investors, like yourself, who have been victimized by broker-dealers like INVEST Financial Corporation. Time to file a claim with FINRA is limited, so do not delay. Call 212-658-1502 now for your free consultation.

As a note to investors, INVEST Financial Corporation also does business under the following names: ANDROSCOGGIN FINANCIAL SERVICES, FIRST FEDERAL WEALTH MANAGEMENT, GORHAM FINANCIAL SERVICES, IFC HOLDINGS, INC., INVEST FINANCIAL CORP, INVEST FINANCIAL CORPORATION, ISFA CORPORATION

SEC Number: 8-27691,