U.S. Bancorp Investments, Inc. (“U.S. Bancorp”) (CRD#17868) 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 U.S. Bancorp, 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 U.S. Bancorp 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. 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.
Can I Sue U.S. Bancorp?
If you’ve lost money caused by U.S. Bancorp and/or its employees’ misconduct then the answer is, YES, you can sue U.S. Bancorp, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue U.S. Bancorp in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against U.S. Bancorp is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is U.S. Bancorp?
U.S. Bancorp (CRD#17868) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, U.S. Bancorp is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
U.S. Bancorp Has Many Different Regulatory Problems
U.S. Bancorp’s rapid growth has not been without consequences. There have been approximately 14 state and 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 customer complaints filed against U.S. Bancorp 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. U.S. Bancorp is a repeat offender: there are over 14 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems U.S. Bancorp Has Faced Over the Years*
U.S. Bancorp has been repeatedly censured, warned, and fined multi-millions of dollars 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 Censures and Fines U.S. Bancorp Investments for Faulty Mutual Fund Share Class Selection Practice
Brief Overview: The Securities and Exchange Commission initiated an investigation into U.S. Bancorp Investments and found breaches of fiduciary duties in connection with its mutual fund share class selection practices and its receipt of fees pursuant to rule 12b-1 under the investment company act of 1940. The SEC stated U.S. Bancorp purchased, recommended, and held for advisory clients mutual fund share classes that charged 12b-1 fees and shareholder servicing fees instead of lower-cost share classes of the same funds, which were available to the clients. Hence, the SEC found that the firm failed to adequately disclose a conflict of interest related to these fees to its clients. Further, by causing certain advisory clients to invest in fund share classes that charged 12b-1 fees and shareholder servicing fees when share classes of the same funds that presented a more favorable value for these clients under the circumstances in place at the time of the transactions were available to the clients, the firm violated its duty to seek best execution for those transactions. The SEC also stated the firm failed to adopt and implement written compliance 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. As a result, the firm was fined $2,400,000.
FINRA Censures U.S. Bancorp for Disadvantaging Mutual Fund Customers Eligible to Save on Fees
Brief Overview: Without admitting or denying the findings, U.S. Bancorp Investments consented to the sanctions and to the entry of FINRA findings that it disadvantaged retirement plan customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge but were instead sold Class B or C Shares with back-end sales charges and higher ongoing fees and expenses. FINRA stated that these sales disadvantaged the customers by causing them to pay higher fees than they were required to pay. According to FINRA, the firm relied on its financial advisors to determine the applicability of sales charge waivers but failed to maintain adequate written policies or procedures to assist its financial advisors in making this determination. FINRA further stated that the firm failed to properly notify and train its financial advisors regarding the availability of mutual fund sales charge waivers and failed to adopt adequate controls to detect instances in which they were not applied. As a result, the firm was censured and paid disgorgement in the amount of $100,410.
FINRA Censure and Fines U.S. Bancorp Investments for Failure to Apply Sales Charge Discounts to Eligible Purchases of UITs
Brief Overview: Without admitting or denying the findings, U.S. Bancorp Investments consented to the sanctions and to the entry of FINRA findings that for almost five years, it failed to identify and apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts. FINRA stated that the firm failed to apply sales charge discounts to many eligible UIT purchases resulting in customers paying excessive sales charges of approximately $144,456.38. FINRA further stated the firm failed to establish, maintain, and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that customers received sales charge discounts on all eligible UIT purchases. In addition to the firm paying restitution to all affected customers, it was censured and fined $175,000.
FINRA Censures and Fines U.S. Bancorp Investments for Using Unfair and Unbalanced Materials on Auction Rate Securities
Brief Overview: FINRA initiated an investigation in which it alleged that U.S. Bancorp Investments used sales materials that were not fair and balanced and did not provide a sound basis for evaluating the facts regarding purchases of auction rate securities. According to FINRA, the materials the firm used failed to adequately disclose the risks of investing in ARS, such as illiquidity and lack of access to funds invested in ARS. FINRA also said the firm failed to establish and maintain adequate procedures reasonably designed to ensure that it marketed and sold ARS in compliance with federal securities laws and applicable NASD and MSRB rules; that the firm failed to maintain procedures reasonably designed to ensure its registered representatives accurately described ARS during sales presentations; and that firm representatives provided customers with adequate disclosure of the risks of ARS. FINRA further stated the firm failed to provide adequate training to its registered representatives regarding the features and characteristics of ARS. As a result, the firm was censured and fined $275,000.
NASD Censures and Fines U.S. Bancorp Investments for Material Misrepresentations Regarding Callable CDs
Brief Overview: Without admitting or denying the allegations, U.S. Bancorp Investments, consented to sanctions and to the entry of NASD findings that in connection with offers and sales of callable CDs through its registered representatives, the firm made numerous material misrepresentations of fact that induced many investors to invest in such products. FINRA stated the firm misrepresented the value of the callable CDs on monthly customer account statements in that they listed the current market value of the callable CDs as the full amount of the principal investment when in fact the market value was subject to market forces and could be significantly less than the initial investment amount. Thus, U.S. Bancorp investments submitted a letter of acceptance, waiver, and consent for the purpose of settling the alleged rule violations described above. As a result, the firm was censured and fined $75,000.
*Above are only some of the regulatory disciplinary actions filed against U.S. Bancorp by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 9 BrokerCheck disclosures.
U.S. Bancorp Customer Complaints
There have been scores of customer complaints filed against U.S. Bancorp stockbrokers and investment advisors over the years. We have launched many investigations of current and former U.S. Bancorp advisors:
- Andrew Hedberg of U.S. Bancorp Investments, Inc.
- Betty Fenton of U.S. Bancorp Investments, Inc.
- Liny Li of U.S. Bancorp Investments
- David Anderson of U.S. Bancorp Investments, Inc.
- James Dennik of U.S. Bancorp Investments, Inc.
- Taylor Cole of U.S. Bancorp Investments, Inc.
- Kevin Reed formerly with U.S. Bancorp Investments, Inc.
- Yousuf Rasuli of U.S. Bancorp Investments, Inc
- Saimir Prapaniku of U.S. Bancorp Investments, Inc
- Mimi Park of U.S. Bancorp Investments, Inc
- Andy Cortes ofU.S. Bancorp Investments, Inc
- Blake McCoy of U.S. Bancorp Investments, Inc
- Daniel Needler of U.S. Bancorp Investments, Inc.
- Sean Pong Formerly With U.S. Bancorp Investments, Inc. Reviews
- Giuseppe Distefano of U.S. Bancorp Investments, Inc. Reviews
If you have lost money investing with any of these U.S. Bancorp advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does U.S. Bancorp Have So Many Regulatory Problems And Customer Complaints?
Sadly, many large brokerages like U.S. Bancorp still lack effective compliance and supervision, which is critical for investor protection and capital market stability and integrity. Compliance challenges continue to grow every day and it’s difficult for even the largest well capitalized firms to keep up with them. This can be attributed to many factors.
Large brokerage firms are merging and consolidating creating larger, more diversified, and more dispersed organizations. The number of branch offices of broker-dealers like U.S. Bancorp has been steadily escalating and firms are becoming more geographically diverse. The distance from the home office and the large number of offices can offer challenges to maintaining uniform, consistent, and complete compliance coverage.
Products offered by large wire houses like U.S. Bancorp as well as their customer base are also becoming more diverse and more complex. When a firm sells products, its registered representatives are required to fully understand all the complexities and be able to convey them in an understandable way to the firm’s customers. This requires a devotion of resources to education. The increased diversity of activities in which the larger brokerage firms engage raises more potential conflicts of interest which are ignored. More and more confidential trade, financial and other information is available to brokerages and their employees and being misused.
As financial markets and products become more complex and as conflicts arise, the extra attention and resources that are necessary to promote compliance with the law through additional education of advisors, improved technology in compliance departments, and adequate staffing of branch level supervisors is sacrificed for the bottom line. The sad truth is many of the biggest broker dealers like U.S. Bancorp have probably chosen profits for their shareholders over protection for their customers.
Did U.S. Bancorp 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. U.S. Bancorp 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 U.S. Bancorp without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By U.S. Bancorp Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with U.S. Bancorp 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.
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