Fidelity Brokerage Services—Dishonest and Unethical Conduct

investment fraud attorneysFidelity Brokerage Allegedly Engaged in Dishonest and Unethical Behavior

Fidelity Brokerage Services allegedly engaged in dishonest and unethical behavior for purportedly allowing unregistered investment advisers to make trades through the Fidelity broker-dealer platform, thereby generating fees for both the firm and the unregistered advisers, according to a statement from secretary of the commonwealth William Galvin.

No less than thirteen unregistered Massachusetts investment advisers used Fidelity’s platform, statements from secretary of the commonwealth William Galvin report.

For example, only one of the aforementioned unregistered advisers reaped more than $730,000 in fees on trades for over ten years, according to statements from Secretary of State William Galvin in an administrative complaint served against Fidelity Brokerage Service LLC.

Over 20 Fidelity Customers Allegedly Paid Unregistered Adviser $732,000 in Advisory Fees over 10-year Period

In one gleaming example, over 20 Fidelity customers paid one unregistered investment adviser, who traded on their behalf, $732,000 in advisory fees over a 10-year period, according to the aforementioned complaint.

The complaint goes on to allege that Fidelity knew that said rep was acting as an adviser during that entire period and encouraged his trading activity by providing the purported adviser, who made thousands of trades for the accounts of his clients, including presents such as frequent flyer miles and tickets to a professional sporting event.

Finally, Fidelity allegedly had policies implemented, since 2011, that specifically noted red flag risk warnings for specific levels of third-party trading, the complaint notes. Those red flags, however, were ignored until recently, according to the statement from Mr. Galvin.

The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of unethical and dishonest behavior which allowed unregistered investment advisers to make trades. 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 unethical and dishonest behavior by unregistered reps 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 (1174 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.