Geneos Wealth Management: 4 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 11, 2019 indicate that Colorado-based brokerage firm Geneos Wealth Management has received regulatory sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Geneos Wealth Management (CRD# 120894).
Established in 2002, Geneos Wealth Management is headquartered in Denver, Colorado and registered in 52 US states and territories. The firm is organized as a corporation and its fiscal year ends in December. According to the firm’s BrokerCheck report, Geneos Wealth Management is the subject of three regulatory sanctions.
In 2018 the SEC sanctioned Geneos Wealth Management in connection to allegations of failures connected to the firm’s mutual fund share class selection practices and receipt of revenue sharing payments. According to the SEC’s findings, the firm between February 2012 and April 2017 invested advisory customers in mutual fund share classes accompanied by 12B-1 fees although those customers were eligible for investments in mutual fund share classes that were cheaper and did not charge 12B-1 fees. The SEC’s findings state that the firm “financially benefitted from investing advisory clients in mutual fund share classes with higher fees,” and it failed to properly disclose to customers that this created a conflict of interest. The firm received more than $1 million in 12B-1 fees on these mutual fund investments, according to the SEC, which also found that the firm’s practice of recommending its advisory clients invest in mutual fund share classes with 12B-1 fees was inconsistent with the firm’s duty to seek best execution for its customers. In connection with these findings, the firm was censured and ordered to pay a fine of $250,000, as well as more than $1.4 million in disgorgement.
In 2015 FINRA sanctioned the firm following allegations it failed to supervise the outside business activities of certain representatives in a branch office who engaged in the completion of limited partnership transactions, although these activities were disclosed to the firm. In connection with these findings, the firm was censured and issued a fine of $12,500.
In 2006 the National Association of Securities Dealers (NASD) sanctioned the firm following allegations the firm failed to obtain an employee’s fingertips and submit them for identification and processing as required by SEC rules, and that consequently the firm did not learn the individual in question had previously been charged with and convicted for criminal conduct. As such, according to the NASD, the firm permitted a statutorily disqualified person to act as an associated person, violating NASD bylaws. In connection with these findings, the firm was censured and issued a fine of $15,000.
If you or someone you know has a complaint regarding Geneos Wealth Management, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recover lost funds. Fitapelli Kurta accepts all cases on contingency: we only get paid if and when you collect money. You may have a limited window by law to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.