Last Updated: February 2025
Have you invested money with Cetera Advisor Networks LLC (CRD #13572)? If so, you should be aware of the firm’s extensive history of regulatory violations, customer complaints, and substantial fines. Our investigation reveals concerning patterns of supervisory failures and regulatory issues that have resulted in significant customer losses.
Overview of Cetera Advisor Networks
Cetera Advisor Networks is a registered broker-dealer and investment adviser based in El Segundo, California. The firm offers various investment products and services through a network of financial advisors across the United States. While Cetera presents itself as a reputable financial services provider, regulatory records reveal a troubling pattern of compliance failures and customer harm.
Key Regulatory Issues and Violations
Recent Major Actions (2021-2024)
- $4.5 Million SEC Fine (2024)
- Failed to maintain and preserve business-related communications
- Widespread use of unauthorized communication channels
- Supervisory failures affecting thousands of customers
- Impact on SEC’s ability to investigate violations
- $22.9 Million SEC Settlement (2021)
- Breach of fiduciary duties
- Improper mutual fund share class selection
- Undisclosed revenue sharing arrangements
- Hidden fees in alternative investments
- Cybersecurity Violations (2021)
- $300,000 fine for failing to protect customer information
- Over 5,600 customers affected by security breaches
- Inadequate identity theft prevention programs
- Failure to implement required security measures
Systematic Supervisory Failures
- Variable Annuity Sales Issues
- $750,000 fine for improper supervision of VA sales
- Failure to identify red flags in L-share contracts
- Unsuitable recommendations to customers
- Inadequate oversight of VA exchanges
- Mutual Fund Overcharges
- Failed to provide available sales charge discounts
- Customers overcharged by millions of dollars
- Inadequate systems to identify eligible discounts
- Required to pay substantial restitution
- Investment Advisory Violations
- $8.6 million in disgorgement and penalties
- Undisclosed conflicts of interest
- Revenue sharing arrangements not disclosed
- Failure to act in clients’ best interests
Major Trends and Concerns
Our analysis of Cetera’s regulatory history reveals several troubling patterns:
- Persistent Supervisory Failures
- Repeated failures to monitor advisor activities
- Inadequate systems to detect misconduct
- Failure to implement required controls
- History of fines for supervision lapses
- Customer Fee Issues
- Multiple instances of overcharging customers
- Failure to provide available discounts
- Undisclosed fees and revenue sharing
- Pattern of putting firm profits ahead of customer interests
- Compliance System Deficiencies
- Inadequate written supervisory procedures
- Failure to implement existing policies
- Poor oversight of communication channels
- Recurring cybersecurity vulnerabilities
Financial Advisors with Customer Complaints
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.
What This Means for Investors
If you’ve invested money with Cetera Advisor Networks, you may have been impacted by these issues. Common signs of potential misconduct include:
- Unexpected account losses
- Higher fees than disclosed
- Unsuitable investment recommendations
- Variable annuity switching
- Unauthorized trading
- Misleading communications about investments
Protecting Your Rights and Recovering Losses
As an investor, you have legal rights and may be entitled to compensation if you’ve suffered losses due to Cetera’s misconduct. Our team at Patil Law specializes in representing investors who have been harmed by broker-dealer misconduct.
Take Action Now
- Document Everything
- Keep all account statements
- Save all correspondence
- Note any verbal communications
- Track unauthorized activities
- Get Professional Help
- Contact experienced securities attorneys
- Understand your legal options
- Learn about the FINRA arbitration process
- Get a free case evaluation
Contact Us for a Free Consultation
Don’t wait to protect your investments. Contact our experienced investment fraud attorneys at Patil Law:
- Call: 800-950-6553
- Get a free consultation
- No recovery, no fee
- Decades of experience recovering investor losses
Our legal team will review your case, explain your options, and help you understand how to recover your investment losses. Time limits apply to these claims, so don’t delay in seeking legal assistance.
Frequently Asked Questions About Cetera Advisor Networks Claims
How do I know if I have a claim against Cetera Advisor Networks?
You may have a claim if you’ve experienced financial losses due to unsuitable investment recommendations, excessive fees, unauthorized trading, or other misconduct. Common signs include unexpected losses, higher fees than disclosed, or investments that don’t match your stated goals or risk tolerance. Our attorneys can review your case for free to determine if you have a viable claim.
What is the process for filing a claim against Cetera?
Most claims against Cetera Advisor Networks are handled through FINRA arbitration. This is typically a faster and less formal process than traditional court litigation. When you contact our firm, we’ll:
- Review your account statements and documents
- Analyze your losses and potential claims
- File the necessary FINRA arbitration paperwork
- Represent you throughout the entire process
How long do I have to file a claim?
There are strict time limits (statutes of limitations) for filing investment fraud claims. In most cases, you should file your claim within six years of the harmful conduct. However, some cases may have shorter deadlines. It’s crucial to contact an attorney as soon as you suspect misconduct to preserve your rights.
What does it cost to hire an attorney for my case?
Our firm handles investment fraud cases on a contingency fee basis. This means:
- No upfront costs to you
- No fees unless we recover money for you
- Free initial consultations
- We advance all case expenses
How much can I recover in a claim against Cetera?
The amount you can recover depends on various factors, including:
- The extent of your losses
- The type of misconduct involved
- The strength of the evidence
- The specific circumstances of your case Our attorneys will help you understand the potential value of your claim during your free consultation.
What types of compensation can I receive?
If your claim is successful, you may be entitled to recover:
- Direct investment losses
- Lost opportunity costs
- Interest on your losses
- Account fees and commissions
- Attorney fees and costs
- Punitive damages in some cases
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.