Furgison Law Group is investigating claims against Commonwealth Financial and National Financial Services related to SEC Complaint alleging conflicts of interest in mutual fund sales

The securities fraud lawyers at Furgison Law Group are currently investigating claims against Commonwealth Financial Network, Commonwealth Equity Services, LLC, and National Financial Services, LLC (“NFS”). The arbitration attorneys at Furgison Law Group are investigating claims of breach of fiduciary duty, conflicts of interest, failure to supervise, misrepresentations, omissions of material facts, violations of state and federal securities laws, along with other broker misconduct. The claims relate to the alleged conflicts of interest related to undisclosed “revenue sharing” agreements, as described in the recent SEC Complaint.

SEC Filed Charges Against Commonwealth

The SEC charged Commonwealth with breaching their fiduciary duty to their advisory clients by failing to disclose conflicts of interest. Commonwealth was paid to select and manage investments for its clients, but failed to tell its clients that some investment choices generated additional multi-million dollar revenues for Commonwealth (referred to as "revenue sharing") while other similar investment choices would have generated much less, or no, additional revenue.

According to the SEC Complaint, the undisclosed conflicts of interest at issue in this case created incentives for Commonwealth to select and hold investments for advisory clients that financially benefited Commonwealth over the interests of its clients, including the incentive to select and hold investments that were more expensive for clients.

Investors Have the Right to Recover Their Losses

When investments are sold by brokerage firms licensed by FINRA, they are subject to the laws that FINRA enforces. The brokerage firms are responsible for ensuring that their brokers are trading fairly, ethically and in the best interest of their clients. Ideally, they would accomplish this through careful supervision. Unfortunately, too often this supervision has been inadequate to fully protect investors. If you purchased any investments through a representative of a registered brokerage firm or an unlicensed salesperson and suffered losses through negligence or fraud, it immediately puts the brokerage firm at fault for failing to supervise their broker. Securities law then dictates that you can hold the firm legally liable to recover your damages.

Can I recover my investment losses?

If you lost money as a result of any investments purchased through Commonwealth Financial Network, Commonwealth Equity Services, LLC, or National Financial Services, LLC , please contact us immediately. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Time is of the essence in these claims. The sooner you act, the greater your chances of recovering your investment losses. Don't wait. Contact us TODAY for a FREE Consultation and case evaluation. We will tell you if you have a viable claim worth pursuing.