Ceros Financial Services

Kurta Law is investigating recommendations by brokers with Ceros Financial Services (CRD#: 37869). Investors should know that the firm has worked with brokers who have investor disputes on their records. Ceros Financial Services is a broker-dealer with headquarters in Rockville, Maryland.

Ceros Financial Services has operated under six other names:

• Asset Management Services
• Forte Capital Group
• Ceros Financial Advisors
• Ceros Capital Markets
• Ceros Broker Service
• Atlantic Partners

Fees and Conflicts of Interest

Brokerage firms have an obligation to describe their conflicts of interests and fees investors may face in their Customer Relationship Summary (Form CRS). Ceros Financial Services discloses the following formation in its Form CRS:

• You’ll pay commissions, transaction fees, and ticket charges on your transactions. These vary depending on the investment product, size of transaction, and other factors. Ticket charges are negotiated between Ceros Financial Services and your registered investment advisor’s firm.
• These transaction-related fees incentivize the firm to encourage you to trade more.
• Some products, such as mutual funds and variable annuities, charge additional fees.
• Ceros Financial Services has revenue sharing agreements with the managers and sponsors of certain mutual funds, alternative funds, private placements, and other investments. These agreements incentivize the firm to recommend these investments over others.
• The firm also earns greater compensation through its proprietary products, such as certain investments managed by its investment advisory affiliates.
• Brokers with Ceros Financial Services may also be registered investment advisors with independent firms or have relationships to affiliated investment advisory firms, and may charge you fees for their services. Ceros Financial Services does not charge or receive advisory fees.
• However, the firm does receive transaction fees and ticket charges on transactions made in your investment advisory account and may receive compensation through revenue sharing agreements in connection with this account.

Broker-Dealer Services

Ceros Financial Services offers the following investment products as well as stocks and bonds. However, investors should keep in mind that these investment vehicles may come with high fees and risks:

• Mutual funds
• Alternative investments and investment funds
• Private placements
• Variable annuities

Regulatory Actions

Ceros Financial Services discloses its history of regulatory actions, including two censures by FINRA, on its detailed BrokerCheck page.

FINRA Censure

On January 13, 2025, Ceros Financial Services consented to the entry of findings that it allegedly failed to terminate three contingency offerings and promptly return investor funds in keeping with regulatory requirements.

According to a Letter of Acceptance, Waiver & Consent (AWC), two of these offerings amended their private placement memorandums to reduce their minimum contingency and price per share, and one eliminated its minimum contingency.

The AWC alleged that Ceros Financial Services was obligated to terminate these offerings and return investor funds at the time of these amendments, but failed to do so. The firm allegedly released investor funds at later dates.

Further, the AWC alleged that the firm’s Written Supervisory Procedures (WSPs) did not reasonably address its obligations with regard to these amendments as described by Securities Exchange Act of 1934 Rule 10b-9.

FINRA censured the firm, fined it $90,000, and ordered it to remedy the supervisory issues alleged in the AWC. You can access the full AWC here.

Alleged Securities Exchange Act Violations

An AWC filed on February 14, 2024, alleged that Ceros Financial Services failed to reasonably supervise the use of personal email accounts for business-related communications and to retain some of these communications from January 2018 through June 2021.

The AWC further alleged that the firm’s policies and procedures failed to adequately safeguard client records and information as required by Rule 30(a) of Regulation S-P of the Securities Exchange Act of 1934. The firm allegedly also failed to establish a written identity theft prevention program in compliance with Regulation S-ID of the Securities Exchange Act.

Ceros Financial Services consented to a censure, $75,000 fine, and an undertaking to remediate the issues alleged in the AWC. You can read the AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of the following brokers currently or formerly associated with Ceros Financial Services who have allegations of misconduct on their records. Contact a securities attorney if you have concerns about your broker’s conduct.

• Dominic Carlo: https://www.kurtalawfirm.com/blog/dominic-carlo/ 
• Ahmed Gheith: https://www.kurtalawfirm.com/blog/ahmed-gheith/ 
• Frank Avallone: https://www.kurtalawfirm.com/blog/frank-avallone/ 

Kurta Law Can Help

Investors who lost money working with a Ceros Financial Services broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.