Last Updated: February 2025
American Portfolios Financial Services, Inc. (APFS) is a broker-dealer firm that operated from 1990 until ceasing operations in October 2024. Based in Holbrook, NY, APFS provided various investment services including mutual funds, variable annuities, and ETFs. This article examines APFS’s regulatory history and what it means for affected investors.
Overview of American Portfolios Financial Services
APFS was established in New York in 1990 and grew to become a significant player in the financial services industry. The firm offered a range of investment products and services through its network of registered representatives. By the time it ceased operations in 2024, APFS had developed an extensive presence in the securities industry, with numerous affiliated entities and complex ownership structures.
Concerning Regulatory and Legal Issues
The firm’s regulatory history reveals multiple serious violations and failures in supervision and compliance:
2024 AML Compliance Failures
In August 2024, FINRA fined APFS $225,000 for failing to establish and implement adequate anti-money laundering (AML) procedures. The firm failed to properly monitor suspicious activities related to low-priced securities transactions, potentially exposing investors to significant risks.
2021 Customer Fund Protection Failures
FINRA sanctioned APFS for inadequate supervision of customer fund transmittals, resulting in a $225,000 fine. A sales assistant converted approximately $390,000 from customer accounts, with many victims being senior citizens.
2020 Complex Product Supervision Issues
The SEC imposed a $650,000 penalty for failing to properly supervise recommendations of complex exchange-traded products (ETPs). Representatives recommended unsuitable products without understanding their risks, leading to significant customer losses.
Pattern of Supervisory Deficiencies
Analysis of APFS’s regulatory history reveals concerning patterns:
- Repeated failures in supervisory systems and procedures
- Insufficient protection of customer assets
- Inadequate monitoring of complex financial products
- Problems with proper documentation and record-keeping
- Multiple instances of failing to protect senior investors
Individual Financial Advisor Issues
We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.
Impact on Investors and Next Steps
If you were a client of American Portfolios Financial Services and experienced losses due to:
- Unsuitable investment recommendations
- Unauthorized trading
- Misrepresentation of investment products
- Poor supervision of your account
- Fraud or conversion of funds
You may have legal recourse to recover your losses. The investment fraud attorneys at Patil Law, P.C. specialize in representing investors who have suffered financial harm due to broker-dealer misconduct.
Time Sensitivity Notice
Claims against broker-dealers typically have strict filing deadlines. Delaying action could jeopardize your ability to recover losses. Contact Patil Law, P.C. today at 800-950-6553 for a free consultation to discuss your situation and understand your options.
Our experienced securities attorneys can help evaluate your case, explain your rights, and guide you through the process of seeking recovery of your investment losses. All consultations are confidential and provided at no cost to you.
Frequently Asked Questions About Broker-Dealer Claims
How do I know if I have a valid claim against APFS?
Common indicators of potential claims include:
- Significant unexpected losses in your investment accounts
- Investments that were riskier than you authorized
- Transactions you didn’t approve
- Recommendations that didn’t align with your stated investment objectives
- Concentration in a single type of investment
- Being sold complex products without proper explanation of risks
How long do I have to file a claim?
Most investment-related claims are subject to strict time limitations, typically:
- FINRA arbitration claims must generally be filed within 6 years of the event
- State law statutes of limitations may be shorter
- The sooner you act, the better positioned you are to recover losses
- Delay can result in loss of important evidence or exceeded deadlines
What can I recover in a successful claim?
Potential recoverable damages may include:
- Direct financial losses from unsuitable investments
- Lost opportunity costs
- Interest on lost funds
- In some cases, attorneys’ fees and costs
- Punitive damages in cases of serious misconduct
How much does it cost to pursue a claim?
At Patil Law, P.C.:
- Initial consultations are always free
- Most cases are handled on a contingency fee basis
- You pay nothing unless we recover money for you
- All fee arrangements are clearly explained upfront
What documents do I need to pursue a claim?
Important documents to gather include:
- Account statements
- New account opening documents
- Correspondence with your broker
- Marketing materials you received
- Notes from conversations with your broker
- Tax returns showing investment losses
How long does the process take?
While each case is unique:
- Most FINRA arbitrations conclude within 12-18 months
- Some cases settle more quickly
- Complex cases may take longer
- We work efficiently to resolve your case as quickly as possible while maximizing recovery
What makes Patil Law, P.C. different from other firms?
Our firm offers:
- Exclusive focus on investment fraud and securities litigation
- Extensive experience with broker-dealer cases
- Track record of successful recoveries
- Direct attorney access throughout your case
- Clear communication and regular updates
- Deep understanding of securities regulations and FINRA rules
Contact Patil Law, P.C. today at 800-950-6553 to discuss your potential claim against American Portfolios Financial Services or any other broker-dealer. Your consultation is free and confidential, and there’s no obligation to proceed with a claim.
This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.