Geneos Wealth Management, Inc. (“Geneos Wealth Management”) (CRD# 120894) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Geneos Wealth Management, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Geneos Wealth Management, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Investment losses caused by broker misconduct can be devastating, especially when dealing with a firm like Geneos Wealth Management that has a documented history of supervisory failures. If you’ve lost money in your investment accounts with Geneos Wealth Management due to unsuitable recommendations, excessive trading, or undisclosed conflicts of interest, you have legal rights. Many investors don’t realize they can pursue claims through FINRA arbitration even if they signed agreements waiving their right to sue in court.
The key is acting quickly because there are strict time limits for filing claims. Most investors who suffered losses at Geneos Wealth Management will need to pursue their case through FINRA arbitration proceedings rather than traditional lawsuits, but this does not mean you’re without recourse.
If you believe you have a claim against Geneos Wealth Management, you should strongly consider speaking with an experienced investment fraud lawyer. You should not wait until it is too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A. offers free consultations to discuss your case and potential recovery options.
Can I Sue Geneos Wealth Management, Inc.?
If you suffered investment losses because of misconduct involving Geneos Wealth Management or one of its financial professionals, you may be able to pursue compensation.
Many brokerage agreements require investor disputes to be resolved through FINRA rather than traditional court litigation. An experienced FINRA arbitration lawyer can review your account activity, investigate the recommendations and representations made to you, prepare the Statement of Claim, and represent you throughout the arbitration process.
How to Sue Geneos Wealth Management for Investment Losses
If you’ve suffered investment losses at Geneos Wealth Management, understanding the claims process is essential to recovering your money. The vast majority of investor disputes with brokerage firms are resolved through FINRA arbitration rather than traditional court proceedings because of arbitration clauses in account opening agreements.
What Can I Do If I Lost Money at Geneos Wealth Management?
What can you do if you lost money at Geneos Wealth Management? You can file a FINRA arbitration claim to seek compensation for your losses. FINRA arbitration is a dispute resolution forum specifically designed for securities-related disputes between investors and brokerage firms or their representatives.
Unlike court cases, FINRA arbitration is typically faster and less formal, but it still requires comprehensive documentation, expert testimony, and a thorough understanding of securities law. The process begins with filing a Statement of Claim that outlines your losses, the misconduct that caused them, and the legal basis for holding Geneos Wealth Management responsible.
Given Geneos Wealth Management’s documented regulatory problems—including the SEC’s findings that the firm violated fiduciary duties by placing clients in higher-fee mutual fund share classes and failing to disclose revenue-sharing conflicts—investors have strong grounds for claims. The firm’s history of supervisory failures, such as the FINRA sanction for not supervising private securities transactions at its Utah branch, demonstrates a pattern of inadequate oversight that can leave investors vulnerable to unsuitable investments and undisclosed risks.
These regulatory violations aren’t just abstract compliance issues—they directly impact your investments. When a firm fails to supervise its representatives or discloses conflicts of interest, you may end up in investments that were inappropriate for your risk tolerance, financial situation, or investment objectives. When Geneos Wealth Management placed advisory clients in mutual fund share classes with higher 12b-1 fees instead of cheaper alternatives, those clients paid unnecessary costs that reduced their investment returns over time.
Who Can Help Me Sue Geneos Wealth Management?
Who can help you sue Geneos Wealth Management? An experienced investment fraud attorney who specializes in FINRA arbitration can guide you through the claims process. The Law Offices of Robert Wayne Pearce, P.A. has extensive experience representing investors in cases against Geneos Wealth Management and similar independent broker-dealers.
Our firm understands the specific supervisory failures common to independent broker-dealer business models like Geneos Wealth Management’s, where remote supervision and limited compliance resources create opportunities for misconduct. We know how to build compelling cases that connect a firm’s documented regulatory problems to the specific losses you suffered, and we have the resources to take on large brokerage firms in arbitration proceedings.
Even if you signed an arbitration agreement, you can still pursue claims—and win. The key is having an attorney who understands both the arbitration process and the securities industry’s regulations, and who can effectively present your case to an arbitration panel.
What is Geneos Wealth Management, Inc.?
Geneos Wealth Management (CRD# 120894) is headquartered in Centennial, Colorado, with branch offices located throughout the United States.
Investors in the Denver metropolitan area who believe they suffered losses because of broker or advisor misconduct can speak with a Denver investment fraud lawyer about their potential recovery options.
Why Does Geneos Wealth Management Have So Many Bad Reviews And Customer Complaints?
Independent broker-dealers like Geneos Wealth Management are known for having weaker oversight systems compared to traditional brokerage firms. The business model relies on opening many small offices nationwide to generate steady revenues without the costs of having on-site managers, compliance officers, and operational staff at each location.
The registered representatives at these independent broker-dealers typically operate as separate businesses. They aren’t employees of the broker-dealer itself, which means they have more independence but less direct supervision. This creates a system where protecting investors’ rights often becomes a lower priority than maximizing profits.
The supervisory structure at independent broker-dealers typically involves other independent contractors running Offices of Supervisory Jurisdiction (OSJs) from distant locations. These OSJ managers aren’t full-time employees of the main company. They often run their own brokerage, insurance, and other businesses on the side. Because they’re managing multiple responsibilities and supervising offices remotely, they cannot effectively monitor the day-to-day activities of the registered representatives.
This means there’s usually no immediate review when new accounts are opened, securities are bought or sold, or client money changes hands. The lack of oversight leaves investors vulnerable to unsuitable investments, unauthorized transactions, and misleading sales practices. There may be no one on site to catch forged signatures, false information about clients’ financial situations, or misrepresentations in sales materials. Many of these offices receive only one compliance visit per year—far too infrequent to catch ongoing problems.
The North American Securities Administrators Association (NASAA) has documented that firms with this business model have more instances of sales abuse and investor losses than traditional brokerage firms with on-site managers and compliance personnel.
Geneos Wealth Management, Inc. Has Many Different Regulatory Problems
Geneos Wealth Management’s rapid growth has not been without consequences. There have been approximately 5 Federal, state and/or self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA)) for a violation(s) of investment-related rules or regulations. In addition, there have been scores of customer complaints filed against Geneos Wealth Management for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Geneos Wealth Management is a repeat offender: there are 4 SEC and FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses or another in the last decade.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS GENEOS WEALTH MANAGEMENT HAS FACED OVER THE YEARS*
Geneos Wealth Management has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA sanctions for its supervisory failures are below:
SEC Orders Geneos Wealth Management To Pay Over $1 million To Investors
The SEC conducted an investigation and discovered a series of failures by Geneos Wealth Management, a registered investment adviser and broker-dealer, in connection with its mutual fund share class selection practices and its receipt of revenue sharing payments. First, it found Geneos Wealth Management invested certain advisory clients in mutual fund share classes that charged 12b-1 fees when these clients were eligible to invest in cheaper share classes of the same funds that did not charge such fees. Geneos Wealth Management financially benefitted from investing advisory clients in mutual fund share classes with higher fees, which created a conflict of interest that Geneos Wealth Management failed to adequately disclose in its Forms ADV, Part 2A (“firm brochures”) or otherwise. In its capacity as a broker-dealer, Geneos Wealth Management received at least $1,047,617.50 in 12b-1 fees based on its advisory clients’ investments in the higher-fee share classes. Geneos Wealth Management’s practice of investing advisory clients in mutual fund share classes that charged 12b-1 fees rather than cheaper share classes of the same funds was also inconsistent with its duty to seek best execution.
Second, the SEC found that Geneos Wealth Management failed to disclose to its clients compensation that it received through agreements with two third-party broker-dealers (“Clearing Brokers”) and conflicts arising from that compensation. Pursuant to the agreements, the Clearing Brokers agreed to share with Geneos Wealth Management certain revenues that the Clearing Brokers received from the mutual funds in the Clearing Brokers’ no-transaction-fee mutual fund programs (“NTF Programs”). These payments, totaling $386,185.77, created a conflict of interest in that they provided a financial incentive for Geneos Wealth Management to favor the mutual funds in the NTF Programs over other investments when giving investment advice to its advisory clients.
Finally, the SEC found that Geneos Wealth Management failed to adopt written policies and procedures reasonably designed to prevent violations of the Advisers Act and the rules thereunder in connection with its mutual fund share class selection practices and its revenue sharing arrangements with the Clearing Brokers.
As a result of the conduct described above, the SEC concluded Geneos Wealth Management willfully violated Sections 206(2), 206(4), and 207 of the Advisers Act and Rule 206(4)-7 thereunder and ordered it to cease-and-desist from any further violations, censured the broker-dealer and investment advisory firm, and ordered it to pay disgorgement and prejudgment interest, totaling $1,135,129.07 to compensate investors that were affected by the conduct detailed above.
FINRA Sanctions Geneos Wealth Management For Not Supervising Private Securities Transactions
FINRA investigated Geneos Wealth Management and found its representatives located at the Draper, Utah branch office participated in the execution of securities transactions, namely investments in the form of limited partnership interests, as part of their disclosed outside advisory activities. The representatives’ participation included, but was not limited to, meeting with and recommending the underlying securities to customers, providing customers with copies of the private placement memorandum and related paperwork, assisting customers with completing the investment paperwork, accepting the completed paperwork and investment funds, and receiving compensation. FINRA found that Geneos Wealth Management failed to supervise these transactions and record them on the firm’s books and records. As a result of the foregoing conduct, FINRA concluded that Geneos Wealth Management violated NASD Conduct Rule 3040, NASD Conduct Rule 2110, and FINRA Rule 2010 for which it was censured and only fined $12,500.
*Above are only two of the regulatory disciplinary actions filed against Geneos Wealth Management by FINRA. There are at least 3 other SEC, FINRA, NASSA and/or state securities regulator investigations and enforcement actions disclosures reported on BrokerCheck as regulatory disciplinary proceeding disclosures.
Did Geneos Wealth Management, Inc. Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Geneos Wealth Management is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Geneos Wealth Management without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By Geneos Wealth Management, Inc. Today
The securities lawyers at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Geneos Wealth Management cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
