Infinity Financial Services (“Infinity Financial”) (CRD#144302) has complaints filed by FINRA (Financial Industry Regulatory Authority) and state regulatory organizations. At the Law Offices of Robert Wayne Pearce, we have investigated Infinity Financial, its regulatory 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 Infinity Financial, 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 Infinity Financial?
If you’ve lost money caused by Infinity Financial and/or its employees’ misconduct then the answer is, YES, you can sue Infinity Financial, 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 Infinity Financial in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Infinity Financial 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 Infinity Financial?
Infinity Financial (CRD#144302) 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, Infinity Financial 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.
Infinity Financial Has Many Different Regulatory Problems
Infinity Financial’s rapid growth has not been without consequences. There have been approximately 3 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.
We have reported and written about these regulatory problems over many years. Infinity Financial is a repeat offender: there are 3 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Infinity Financial Has Faced Over the Years
Infinity Financial 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:
Ohio Department of Insurance Fines Infinity Financial for Agent’s Incorrect Answer to Questionnaire
Brief Overview: An Infinity Financial employee applied for a license to operate as an insurance agent in the state of Ohio. Within the application, a question related to past administrative proceedings was incorrectly answered as “no.” The Ohio Department of Insurance believed this to be a violation and, under the applicable code, and may refuse a license if the applicant has provided incorrect, misleading, incomplete, or materially untrue information in the application. As a result, the firm was fined.
FINRA Censures and Fines Infinity Financial for Faulty Supervisory System Concerning Background Checks for New Hires
Brief Overview: Without admitting or denying the findings, Infinity Financial consented to the sanctions and to the entry of findings that it failed to establish, maintain, and enforce a supervisory system designed to ensure that the firm conducted required background investigations into disciplinary histories, financial circumstances, and qualifications of its new hires. FINRA stated that the firm’s supervisory system and new hire checklist did not include a procedure to conduct searches of public records. Instead, the firm relied upon google searches and the accuracy of CRD disclosures made by prior employers and so it recruited registered representatives with reportable disciplinary histories and financial events. Due to the firm’s inadequate background check procedures, the firm hired registered representatives without detecting pending bankruptcies, judgments, and tax liens.
Alabama Fines Infinity Financial for Unregistered Business Activity
Brief Overview: Infinity Financial filed an application for registration as a broker-dealer in the state of Alabama. The President and CCO provided a statement that no prior securities activity had occurred in Alabama by the firm. However, records provided by a clearing firm reflected two securities transactions effected by Infinity Financial on behalf of an Alabama client. Specifically, trade confirmations reflected securities transactions during the time that the registration application was pending. The firm was instructed to conduct a recission offer. A consent order was entered into whereby the firm paid to the Alabama Securities Commission partial reimbursement for the commission’s cost for investigating this matter and an administrative assessment through disgorgement of commissions.
Infinity Financial Customer Complaints
There have been scores of customer complaints filed against Infinity Financial stockbrokers and investment advisors over the years. We have launched many investigations of current and former Infinity Financial advisors:
If you have lost money investing with any of these Infinity Financial 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 Infinity Financial Have So Many Regulatory Problems?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Infinity Financial 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. Infinity Financial 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 Infinity Financial 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 Infinity Financial 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 Infinity Financial 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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