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Broker Complaints: Arete Wealth Management (CRD# 44856)

The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding the Illinois-based brokerage Arete Wealth Management (CRD# 44856).

Formed in Illinois in 1998, Arete Wealth Management is headquartered in Schaumburg, Illinois and registered in 51 US states and territories. Joshua Dean Rogers is President; David Carl Hock is Chief Financial Officer; Unbo Chung is Chief Compliance Officer. The firm is registered in fifty-one US states and territories.

According to the firm’s BrokerCheck report, Arete Wealth Management is the subject of two regulatory sanctions.

In 2012 the Financial Industry Regulatory Authority (FINRA) sanctioned Arete Wealth Management following allegations the firm approved a private offering to its customers without conducting adequate due diligence. According to FINRA’s allegations, an individual involved with the fund in question had misrepresented his educational credentials, and the umbrella corporation that owned the fund was involved in “fraudulent activity.” FINRA further alleged Arete Wealth Management failed to sufficiently document what due diligence it did perform. Arete Wealth Management was censured and issued a fine of $25,000.

In 2000 the National Association of Securities Dealers (NASD) sanctioned Arete Wealth Management following allegations the firm, acting through an individual, received funds for the sale of units in a contingency offering, and withdrew funds from the escrow account prior to selling the required minimum amount of units in bona fide transactions. Allegedly, Arete Capital Management also failed to abide by the terms of its membership agreement, and failed to notify NASD that it intended to materially change its business operations from “best efforts” underwritings to a firm commitment basis. NASD’s filing also states the firm, acting through the individual in question, conducted securities transactions without maintaining the minimum required net capital. Arete Wealth Management was censured and issued a fine of $25,000.

If you have lost money investing with Arete Wealth Management, you may be entitled 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 a contingency basis: Fitapelli Kurta only gets paid if and when you recover money.  Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.