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Broker Complaints: Commonwealth Financial Network (CRD# 8032)

 

The securities fraud law firm, Fitapelli Kurta is interested in hearing from investors who have lost money investing with Commonwealth Financial Network, or one of their brokers.

Commonwealth Financial Network is a brokerage and investment adviser firm with headquarters located in Waltham, Massachusetts. They were formed in Massachusetts in November 2010 and have offices in all fifty states.

Commonwealth Financial has a history of disciplinary problems with the Financial Industry Regulatory Authority (FINRA) and has been fined multiple times for failure to comply with various FINRA rules.

For example, on March 19, 2014 Commonwealth Financial was fined $250,000 for failing to perform surveillance review of 12.6 million outgoing emails. (This comprised about 90% of its broker’s outgoing emails.)

On March 19, 2014 Commonwealth Financial was fined $300,000 when one of its broker sold non traded REITs that failed to meet specific Massachusetts prospectus concentration requirements.

On September 6, 2007 Commonwealth Financial was fined $250,000 for failure to supervise one of its brokers who defrauded at least 34 customers by lying about purchases and sales of securities, misappropriated funds, and sent customers false statements relating to their investment accounts.

On September 29, 2009 Commonwealth Financial was fined $100,000 for allowing customer information to be left vulnerable to unauthorized access. As a result, in 2008 an authorized intruder gained access to a list of 368 customer accounts and entered unauthorized purchase orders in eight of those accounts before the activity was discovered.

On August 26, 2005 Commonwealth Financial was fined $1.4 million for maintaining a revenue sharing program with mutual fund complexes and for failing to retain internal emails as requires by the Securities Exchange Act Rule 17a-4(c)(4).

For a full list of Commonwealth Financials customer complaints and FINRA violations, see their BrokerCheck Report.

If you or someone you know has lost money investing with Commonwealth Financial or one of their brokers, contact the attorneys at Fitapelli Kurta today for your free consultation.