American Portfolios—Unsuitable Mutual Fund Switching

investment fraud attorneysAmerican Portfolios Allegedly Engaged in 78 Unsuitable Mutual Fund Switching Transactions in 15 Accounts

American Portfolios, from May of 2011 through May of 2013, allegedly engaged in 78 unsuitable mutual fund switching transactions in 15 accounts, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC) currently under review by attorneys Alan Rosca and Joe Peiffer.

American Portfolios also failed to establish and enforce a supervisory system, including written supervisory procedures, said AWC also reports.

The Peiffer Rosca Wolf securities lawyers are currently investigating American Portfolios alleged failure to supervise the activities of a registered representative to prevent unsuitable mutual fund switching.

American Portfolios Allegedly Incurred Approximately $91,000 in Unnecessary Sales Charges; Censured and Fined $50,000

American Portfolios’ customers incurred approximately $91,000 in unnecessary sales charges, an amount returned by the firm, according to the aforementioned AWC presently being examined by attorneys Alan Rosca and Joe Peiffer.

As a result of the aforementioned behavior, American Portfolios, headquartered in Holbrook, New York, allegedly violated NASD and FINRA Rules, and hence, has been censured and fined $50,000 by FINRA.

One should also note that, according to the AWC, American Portfolios neither admitted nor denied the FINRA findings.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of unsuitable mutual fund switching transactions and failure to properly supervise registered reps, and are currently investigating American Portfolios’ alleged unsuitable mutual fund switching. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of American Portfolios’ alleged unsuitable mutual fund switching are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1157 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.