Ameritas Investment Company, LLC (“Ameritas Investment”) (CRD# 14869) has faced numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors. At the Law Offices of Robert Wayne Pearce, we have investigated Ameritas Investment, its regulatory and customer complaints, and have 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 Ameritas Investment, 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.
Can I Sue Ameritas Investment Company?
Yes, you can sue Ameritas Investment if you’ve lost money due to misconduct by the firm or its employees. However, the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. FINRA arbitration is the most common path to recovery for investors who have suffered losses due to broker misconduct.
The easiest way to know if you have a viable case against Ameritas Investment is to contact our office for a free case evaluation.
How to Sue Ameritas Investment Company for Investment Losses
To sue Ameritas Investment for your investment losses, you’ll typically pursue your claim through FINRA arbitration rather than traditional court litigation. FINRA arbitration is a neutral forum specifically designed to resolve disputes between investors and brokerage firms.
The process begins with filing a Statement of Claim with FINRA, which outlines the misconduct that caused your losses. Common claims against Ameritas Investment include unsuitable investment recommendations, failure to supervise, churning, unauthorized trading, and breach of fiduciary duty. You must file your claim within the statute of limitations, which is typically six years from the date of the violation or three years from when you discovered (or should have discovered) the loss.
Once your claim is filed, both parties engage in discovery to exchange relevant documents and information. The case then proceeds to a hearing before a panel of arbitrators who will evaluate the evidence and determine whether Ameritas Investment is liable for your losses. Having experienced legal representation is critical – the brokerage firm will have attorneys defending them, and you need an advocate who understands securities law, FINRA procedures, and how to effectively present your case.
The securities lawyers at our firm have extensive experience in FINRA arbitration proceedings and know how to build a strong case against firms like Ameritas Investment. We handle all aspects of the arbitration process, from filing the initial claim to presenting evidence at the hearing, so you can focus on your recovery while we fight for the compensation you deserve.
What is Ameritas Investment Company, LLC?
Ameritas Investment (CRD# 14869) was first approved as a broker-dealer by the SEC and FINRA in 1984. It subsequently registered with the SEC as an investment advisor in 1998. Since then there has been a name change and restructuring. The company is controlled by Ameritas Life Insurance Corp. and Ameritas Mutual Holding Company, and is headquartered in Lincoln, Nebraska. Its independent broker-dealer Business Model has grown through acquisition and organic development of primarily one and two person registered representative offices supervised remotely. Today there are over 400 Ameritas Investment branch offices with over 1100 registered representatives in every state. It is 1 of the larger broker-dealer and investment advisory firm in the United States.
Why Does Ameritas Investment Company Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Ameritas Investment are known for weak supervision practices. The business model operates like a franchise – opening many small offices nationwide without the costs of full-service branches that have on-site managers, compliance officers, and operations staff.
The registered representatives at these firms typically run their own separate businesses. They’re not employees of the broker-dealer, so they don’t face the same level of control as advisors at traditional brokerage firms. These independent contractors often prioritize maximizing their own profits over protecting investors’ interests.
The supervision structure makes matters worse. Remote supervisors at Offices of Supervisory Jurisdiction (OSJs) monitor the branch offices from a distance and report to headquarters. These OSJ managers aren’t devoted full-time supervisors – they run their own brokerage, insurance, and other businesses. This means they simply cannot supervise the day-to-day operations of the registered representatives effectively.
There’s typically no immediate review of new customer accounts, securities transactions, business records, cash receipts and deliveries, or correspondence. This lax supervision leaves investors vulnerable to sales of unsuitable securities that haven’t been reviewed or authorized by anyone other than the sales representative earning a commission. It’s not unusual for compliance audit visits to happen only once per year at many of these offices.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealer firms than at traditional brokerage firms with on-site managers and compliance personnel.
Ameritas Investment Company Has Many Different Regulatory Problems
Ameritas Investment Company’s rapid growth has not been without consequences. There have been approximately 20 Federal, 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 hundreds of customer complaints filed against Ameritas Investment 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. Ameritas Investment is a repeat offender: there are over 8 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 AMERITAS INVESTMENT COMPANY HAS FACED OVER THE YEARS*
Ameritas Investment has been repeatedly censured, warned, and fined millions 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 Sanctions Ameritas Investment For Mutual Fund Sales Abuse And Orders Over $3.3 Million In Disgorgement To Customers
The SEC sanctioned Ameritas Investment for breaches of fiduciary duty and inadequate disclosures by registered investment adviser in connection with its mutual fund share class selection practices and the fees it received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”). During the relevant period, the SEC found that Ameritas Investment purchased, recommended, or held for advisory clients mutual fund share classes that charged 12b-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible. Respondent received 12b-1 fees in connection with these investments. Further, that Ameritas Investment failed to disclose in its Form ADV or otherwise the conflicts of interest related to (a) its receipt of 12b-1 fees, and/or (b) its selection of mutual fund share classes that pay such fees. During the Relevant Period, Respondent received 12b-1 fees for advising clients to invest in or hold such mutual fund share classes. As a result, Ameritas Investment was ordered to cease-and-desist from this misconduct, and to pay customers disgorgement with interest in excess of $3.3 million.
FINRA Sanctions Ameritas Investment For Violating Municipal Securities Rulemaking Board Rules
FINRA investigated and found that during the relevant period that Ameritas Investment provided underwriting services for a municipal issuer with which it had an active “blanket” financial advisory agreement, and thereby acted simultaneously as the issuer’s financial advisor and its underwriter. FINRA concluded that this conduct of Ameritas violated MSRB Rule G-23 and then censured and fined the company for that violation.
FINRA Sanctions Ameritas Investment For Variable Annuity Supervisory Lapses
FINRA investigated and found that Ameritas Investment failed to establish, maintain, and enforce an adequate supervisory system and written supervisory procedures (“WSPs”) related to the sale of multi-share class variable annuities (“VAs”). Further, that Ameritas Investment also failed to establish, maintain, and enforce a supervisory system that was reasonably designed to achieve compliance with F1NRA Rule 2121 (Fair Prices and Commissions). As a result of the foregoing conduct, FINRA concluded that Ameritas Investment violated FINRA Rule 2330(d), NASD Rule 3010, FINRA Rule 3110, and FINRA Rule 2010 and then it censured and fined the company.
SEC Sanctions Ameritas Investment For Underwriting Abuses
The SEC sanctioned Ameritas Investment for violations of an antifraud provision of the federal securities laws in connection with its underwriting of certain municipal securities offerings. The SEC found that Ameritas Investment, a registered broker-dealer, conducted inadequate due diligence in certain offerings and as a result, failed to form a reasonable basis for believing the truthfulness of certain material representations in official statements issued in connection with those offerings. This resulted in Ameritas Investment offering and selling municipal securities on the basis of materially misleading disclosure documents. As a result of the conduct described herein, Respondent willfully violated Section 17(a)(2) of the Securities Act and for which it was censured and fined.
FINRA Sanctions Ameritas Investment For Not Supervising Equity-Indexed Annuity Transactions
FINRA investigated and found that, for more than two years, Ameritas Investment did not adequately supervise recommendations to liquidate securities in order to purchase equity-indexed annuities (“EIAs”), nor did Ameritas Investment record the resulting transactions. Instead, Ameritas’s Investment, without adequate supervision, mistakenly treated those recommendations and transactions as outside business activities.
As a result, FINRA concluded that Ameritas Investment violated NASD Rule 3010(a) and FINRA Rules 2010, 3110(a), 3270, and 4511(a) and censured the brokerage firm and fined it $145,000.
FINRA Sanctions Ameritas Investment For Not Supervising Representatives Who Misappropriated Customer Funds
FINRA investigated Ameritas Investment and found that it did not detect that one of its representatives sought to change a customer’s address of record to the address of the representative’s branch office, then requested disbursements from the customer’s account to her new address of record. As a result, Ameritas Investment sent $34,000 from the customer’s account to the representative’s branch, where he misappropriated the money. FINRA concluded that Ameritas Investment by failing to adequately monitor and otherwise supervise the representative’s activity, AIC violated NASD Rules 2110, 3010(a) and (b), and 3012(a)(2)(B) and imposed a censure and a fine upon the company.
FINRA Sanctions Ameritas Investment For Cheating UIT Customers Out Of Sales Discounts
FINRA conducted an investigation into Ameritas Investment’s Unit Investment Trust (“UIT”) sales practices and discovered that the brokerage failed to apply sales charge discounts to certain customers’ eligible purchases of UITs in violation of FINRA Rule 2010. In addition, FINRA found that Ameritas Investment 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 violation of NASD Conduct Rule 3010 and FINRA Rule 2010. As a result, FINRA censured and fined Ameritas Investment for the misconduct.
FINRA Sanctions Ameritas Investment For Not Reviewing Misleading Financial Plans Of Representatives
In the course of one of its investigations, FINRA discovered that Ameritas Investment, through one registered representatives used communications with the public in the form of written financial plans, which contained misleading statements and omitted material information. The plans were created by the representative who provided them to customers. FINRA found that Ameritas Investment failed to ensure that the communications were approved by a registered principal at the firm prior to use with customers, and failed to file the communications with FINRA. As a result, FINRA concluded that Ameritas Investment violated NASD Rules 2210, IM-2210-2, 2220, and 2110. In addition, FINRA found that Ameritas Investment failed reasonably to supervise the activities of 1 of its representatives in communicating communications with the public and her recommendations to fund the purchase of securities with proceeds from mortgage transactions. As a result, FINRA concluded that Ameritas Investment violated NASD Rules 3010(a) and 2110, and, once again, censured the brokerage firm and imposed a fine.
*Above are only some of the regulatory disciplinary actions filed against Ameritas Investment Company by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 12 more BrokerCheck disclosures.
How to File an Official Complaint Against Ameritas Investment Company or One of Its Brokers with FINRA
If you believe you have been a victim of investment fraud or misconduct by Ameritas Investment or one of its brokers, you have the right to file an official complaint with FINRA. You can submit your complaint through FINRA’s online complaint center or by contacting them directly. Your complaint will be reviewed and may result in regulatory action against the broker or firm.
However, filing a regulatory complaint is different from pursuing financial recovery for your losses. A FINRA complaint may lead to disciplinary action against the broker, but it typically won’t result in compensation for you. To recover your investment losses, you need to file a claim through FINRA arbitration.
Get Legal Help Filing Your Claim
While you can file a regulatory complaint on your own, pursuing a FINRA arbitration claim for financial recovery is complex and requires legal expertise. Ameritas Investment will have experienced attorneys defending them, and you need skilled representation to level the playing field.
Our securities lawyers understand FINRA arbitration procedures, know how to gather and present evidence effectively, and have a proven track record of recovering losses for investors. We handle the entire process from start to finish, allowing you to focus on moving forward while we fight for the compensation you deserve.
Did Ameritas Investment Company 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. Ameritas Investment 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 Ameritas Investment without representation with an attorney about their complaints and have their complaints denied.
Consult With An Attorney Who Recovers Investment Losses Caused By Ameritas Investment Company 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 Ameritas Investment Company cases, and Attorney Pearce has recovered over $175 million for clients and 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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