Last Updated: February 2025
When entrusting your financial future to a broker-dealer, it’s crucial to understand their regulatory history and compliance track record. OSAIC Institutions, Inc. (CRD #35371), formerly known as Infinex Investments, has faced multiple regulatory actions that raise serious concerns about their supervision and compliance practices.
About OSAIC Institutions
OSAIC Institutions is a broker-dealer headquartered in Meriden, Connecticut. The firm conducts 12 types of business, including mutual fund sales, variable life insurance and annuities, and municipal securities trading. While registered with FINRA, the SEC, and 53 U.S. states and territories, OSAIC has accumulated a concerning history of regulatory violations.
Key Regulatory Issues and Violations
Over the past several years, OSAIC Institutions has faced multiple regulatory actions highlighting systematic supervisory failures:
1. Mutual Fund Sales Practice Violations (2019)
- Failed to properly disclose conflicts of interest related to mutual fund share class selection
- Charged customers excessive 12b-1 fees when lower-cost share classes were available
- Ordered to pay $865,932 in disgorgement plus $112,766 in interest
2. Non-Traditional ETF Supervision Failures (2015)
- Failed to properly supervise sales of complex ETF products
- Allowed representatives with minimal training to recommend unsuitable investments
- Customer losses exceeded $287,171
- Fined $150,000 and ordered to pay restitution
3. Order Ticket Documentation Issues (2011)
- Failed to maintain proper records for corporate and municipal bond transactions
- Inadequate supervisory systems for order ticket recordkeeping
- Fined $15,000 for violations of SEC and MSRB rules
Systematic Supervisory Problems
A clear pattern emerges from OSAIC’s regulatory history:
- Repeated failures to implement adequate supervisory systems
- Insufficient training of registered representatives
- Ongoing issues with compliance documentation and recordkeeping
- Multiple instances of customers paying excessive fees or suffering losses
Problem Financial Advisors
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.
Protecting Your Investment Rights
If you’ve lost money while investing through OSAIC Institutions or its financial advisors, you may have legal recourse to recover your losses. Common red flags include:
- Unsuitable investment recommendations
- Excessive fees or commissions
- Lack of proper risk disclosures
- Unauthorized trading
- Misrepresentation of investment products
Frequently Asked Questions About OSAIC Institutions Claims
How do I know if I have a valid claim against OSAIC Institutions?
Common indicators of a valid claim include significant investment losses that seem unusual or unexpected, investments that didn’t match your stated risk tolerance or investment objectives, high-pressure sales tactics to purchase specific products, excessive trading in your account (churning), undisclosed fees or commissions, and investments that weren’t fully explained to you.
Is there a time limit to file a claim against OSAIC Institutions?
Yes. Most investment claims are subject to strict statutes of limitations and eligibility requirements. FINRA arbitration claims typically must be filed within 6 years of the event, though state securities laws may have different deadlines. The sooner you act, the better chance of preserving your legal rights and recovering documents.
How much does it cost to pursue a claim?
At Patil Law, P.C., we handle investment fraud cases on a contingency fee basis, meaning no upfront costs to you. We only get paid if we recover money for you, initial consultations are always free, and you pay nothing out of pocket during the entire process.
What types of compensation can I recover?
Potential recoverable damages may include direct investment losses, lost opportunity costs, interest, account fees and commissions, punitive damages in some cases, and attorney fees and costs in certain circumstances.
What documentation do I need to pursue a claim?
While we can help gather records, it’s helpful to have account statements, trade confirmations, emails or correspondence with your advisor, account opening documents, any marketing materials you received, and notes from conversations with your advisor.
What sets Patil Law, P.C. apart in handling OSAIC claims?
Our firm offers:
- Exclusive focus on investment fraud cases
- Deep understanding of securities regulations
- Track record of successful recoveries
- Direct attorney access throughout your case
- Regular case updates and communication
- National practice handling cases across the U.S.
The investment fraud attorneys at Patil Law, P.C. specialize in helping investors recover losses caused by broker misconduct and inadequate supervision. Our experienced legal team understands the complex regulations governing broker-dealers and how to hold them accountable for violations.
Don’t wait to protect your financial interests. Contact Patil Law, P.C. at 800-950-6553 for a free consultation to discuss your potential case against OSAIC Institutions. Our attorneys work on a contingency fee basis, meaning you pay nothing unless we recover money for you.
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.