Articles Tagged with Cetera Advisor Networks

Chicago-based Stoltmann Law Offices, P.C. represents GPB investors in claims against brokerage firms and financial advisors who solicited investments in the GPB Capital Funds.  GPB was named in a criminal indictment by the U.S. Department of Justice on February 4. GPB’s top executives were charged with fraud and running a Ponzi scheme. The government charged three GPB executives — David Gentile, Jeffrey Schneider and Jeffrey Lash — with securities fraud, wire fraud and conspiracy.

According to Investment News, “GPB raised $1.8 billion from investors starting in 2013 through sales of private partnerships, but it has not paid investors steady returns, called distributions, since 2018. More than 60 broker-dealers partnered with GPB to sell the private placements and charged customers charged clients commissions of up to 8%.” Stoltmann Law Offices pursues those brokerage firms for their investor-clients to recover GPB losses.

Gentile, the owner and CEO of GPB Capital, and Schneider, owner of GPB Capital’s agent Ascendant Capital, are charged with lying to investors about the source of money used to make 8% annualized investor payments, according to the SEC’s complaint. Using the marketing broker-dealer Ascendant Alternative Strategies, GPB told investors that the unusually high payments were paid exclusively with monies generated by GPB Capital’s portfolio companies, the SEC alleged. At first glance, the distributions were highly appealing to investors, since ultra-safe U.S. Treasury Notes are yielding around 1%.

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from dealing with broker-advisors affiliated with the Cetera financial group.  The securities regulator FINRA recently fined three Cetera Financial Group broker-dealers $1 million, claiming that Cetera’s “supervisory systems and procedures were deficient when handling securities transactions.”

Like many advisory firms, Cetera employs representatives who are “dually registered,” meaning they are broker-dealers and registered investment advisers. In the Cetera case, their representatives managed more than $80 billion in assets across 47,000 accounts. According to U.S. Securities and Exchange Commission (SEC) exams conducted in 2013, 2015 and 2017, Cetera was “aware of the supervisory deficiencies.”

Without admitting or denying the allegations, Cetera recently signed a FINRA letter of Acceptance, Waiver, and Consent and agreed to FINRA’s sanctions, which included a censure and an agreement that they would review and revise, as necessary, systems, policies and procedures related to the supervision of dually-registered reps’ securities transactions, according to

Did you or someone you know lose money with broker Robert Magee, of Cetera Advisor Networks in Tarentum, Pennsylvania? If so, the attorneys at Stoltmann Law Offices are interested in speaking with you about those losses. Mr. Magee was accused of misrepresenting material facts related to a variable universal life insurance policy, recommending an unsuitable limited partnership, mutual fund and annuity purchase that resulted in losses and recommending unsuitable limited partnership investments. These securities can be unsuitable for many investors, because of their age, net worth, investment risk tolerance and sophistication. A broker must do his due diligence on every security he recommends or sells, based on the above factors, and others, in order to try to prevent losses in the customer’s portfolios. If he does not, his brokerage firm may be liable for losses on a contingency fee basis. You may be able to bring a claim against Cetera Advisor Networks in the Financial Industry Regulatory Authority (FINRA) arbitration forum.

Robert Magee was previously registered with Waddell & Reed from September 1983 until November 1983, Merrill Lynch in New York, New York from October 1983 until February 1992, Nathan & Lewis Securities in New York from February 1992 until August 2003 and Walnut Street Securities in Tarentum, Pennsylvania from August 2003 until September 2013. He is currently registered with Cetera Advisor Networks in Tarentum, and has been since September 2013. He has four customer disputes against him, and 16 judgment/liens, according to public, online BrokerCheck records with FINRA.

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