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Broker Complaints: Sunset Financial Services, Inc. (CRD# 3538)

The stock fraud attorneys at Fitapelli Kurta are interested in speaking to investors regarding complaints against Sunset Financial Services, Inc. (CRD# 3538)

Sunset Financial Services, Inc. is a broker-dealer firm registered with both the SEC and FINRA. Sunset Financial Services, Inc. was formed in Washington in 1964. Their main office is located at 3520 Broadway, Kansas City, MO 64111. Sunset Financial Services, Inc. has around 269 brokers in 48 states, and D.C. It raises approximately $18 million in annual gross revenue and $2.4 billion in client assets. In July 2014 it was announced that Securities America, a subsidiary of Ladenburg Thalmann, would acquire Sunset Financial Services, Inc.

Sunset Financial Services, Inc. has a history of customer complaints, according to its BrokerCheck Report. For example, in July 2013, Sunset Financial Services, Inc. was fined $20,000 stemming from unsuitable nontraditional ETF’s. Specifically, Sunset Financial Services, Inc. failed to conduct due diligence and permitted its brokers to sell and recommend nontraditional ETF’s before fully understanding the inherent complexity and risks associated with these ETFs. Nontraditional ETFs are typically no suitable for retail investors, due to their notable risk factors and complex characteristics. Sunset Financial Services, Inc. placed no restrictions on its customer’s ability to trade nontraditional ETFs in their account and failed to place any kind of restrictions or exception reports to monitor either the length +of time that customer held open positions in nontraditional ETFs or losses occurring as a result of those positions.

Also in July 2013, Sunset Financial Services, Inc. was fined $200,000 for selling private placements as an unaffiliated broker-dealer. Sunset Financial Services, Inc. received around $1,140,000 from the sale of one of these private placements and over $45,000 for the sale of another private placement. Additionally, some brokers distributed unapproved advertisement materials related to these private placements to Sunset Financial Services, Inc. customers. The brokers who distributed the materials relied on Sunset Financial Services, Inc. and assumed the materials had already been approved before distribution.

In February 2007, Sunset Financial Services, Inc. was fined $18,000 by the Business Regulation and Enforcement Division of the Mississippi Secretary of State for failing to supervise two Sunset Financial Services, Inc. brokers in their Mississippi office. The brokers were subsequently terminated.

In October 2005, Sunset Financial Services, Inc. was fined $50,000 by the State of Hawaii Department of Commerce and Consumer Affairs’ Securities Enforcement Branch for failing to supervise two representatives in their Hawaii office.

In December 2004, Sunset Financial Services, Inc. was fined $250,000 by the Utah Division of Securities for failing to supervise Gregg Simper. According to Sunset Financial Service’s BrokerCheck Report, Gregg Simper committed suicide in April 2000. Greg Simper left a note, confessing that during his time at Sunset Financial Services, Inc. he had been stealing from clients for years, he had destroyed a number of office records, had created false statements of accounts, had created correspondence that falsely represented the investment accounts, and destroyed documents and files for the accounts in question. As a result, Sunset Financial Services, Inc. clients lost $2.2 million dollars.

If you or someone you know has fallen victim to any corrupt broker practices at Sunset Financial Services, Inc. as a result of bad investments recommended by Sunset Financial Services, Inc. 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 Sunset Financial Services, Inc. Time to file a claim with FINRA is limited, so do not delay. Call 212-658-1502 now for your free consultation.