Geneos Wealth Management

Kurta Law wants to hear from customers of Geneos Wealth Management (CRD #: 120894) who believe they may have suffered losses due to broker fraud or misconduct. Geneos Wealth is a full-service advisory firm, offering investor education, financial tools, personalized information, and recommendations on whether to buy, sell, or hold securities.

Background Information

Geneos Wealth Management is a full-service broker-dealer with headquarters in Englewood, Colorado. It has been registered as a broker since 2002.

Regulatory Actions

Investors should review Geneos Wealth Management’s record of alleged regulatory rule violations. You can see the full list of regulatory allegations on the firm’s detailed BrokerCheck record.

$150,000 Fine Following Allegations Regarding Recommendations of LJM and GPB

According to an Acceptance, Waiver, and Consent agreement (AWC) filed on March 18, 2022, Geneos consented to the findings that it failed to reasonably supervise its representatives’ recommendations of an alternative mutual fund called LJM Preservation and Growth Fund. (AWCs allow firms to settle with FINRA without admitting or denying the findings.) LJM’s value dropped by 80% in 2018, resulting in significant losses for investors. The alternative nature of this mutual fund meant that the firm should have carefully reviewed the recommendations to ensure it did not pose too much risk to customers.

This AWC further alleges that Geneos failed to inform investors that GPB Holdings had failed to make timely filings with the Securities and Exchange Commission (SEC). FINRA alleges this was negligent since a failure to make required filings with the SEC might affect an investor’s decision to invest. 

FINRA Supervisory Rules

FINRA Rule 3110 requires that firms establish systems of supervision to ensure their broker’s recommendations comply with FINRA suitability requirements. 

Terms of the AWC

As part of the terms of the AWC, the firm consented to a fine of $150,000 and a restitution payment of $250,710.41 plus interest.

California Department of Insurance Allegations

The California Department of Insurance alleged that the department of insurance asserted various claims arising from four disciplinary actions. The department alleged that these claims constituted breaches of certain provisions of the California Insurance Code.

California imposed a fine of $5,000.

SEC Fine of $250,000 Following Mutual Fund Allegations

On April 8, 2018, the SEC alleged that Geneos had failed to recommend cheaper shares of mutual funds to clients, which allegedly resulted in over $1 million in payments to Geneos.

The firm also allegedly failed to disclose compensation it received from third-party broker-dealers and conflicts of interest arising from broker-dealers. The clearing brokers allegedly agreed to share revenues generated by the clearing broker’s no-transaction-fee mutual fund programs. This created a conflict of interest that should have been disclosed to customers.

The SEC imposed a fine of $250,000.

Brokerage Fees

The firm discloses its fees as well as its conflicts of interest in its Customer Relationship Summary (Form CRS).

• Transaction-based fees, also known as commissions. These commissions create an incentive for brokers to recommend these investments.
• Mutual funds may come with 12b-1 fees which reduce the value of your investment.
• Certain products may come with commissions for Geneos. These include Exchange-Traded Funds, 529 plans, closed-end funds, Unit investment Trusts (UITs), and variable insurance products.
• Geneos has an incentive to recommend certain features for annuity contracts. Make sure to ask your broker about their conflicts of interest, especially if they are encouraging you to sell one contract to replace it with another.

Records of Alleged Broker Misconduct

Kurta Law is aware of Geneos Wealth brokers who have allegations of misconduct on their records. This is by no means a complete list of Geneos brokers with misconduct on their records. Ask your Geneos representative about their record of misconduct, and look up their Central Registration Deposit (CRD) number on FINRA BrokerCheck.

• One broker is facing allegations that he failed to properly manage accounts. The investor is seeking to recover over $500,000.
• Another broker alleged that a Geneos Wealth broker recommended an unsuitable product.
• Kurta Law is aware of another Geneos Wealth broker who is facing two investor disputes alleging he recommended unsuitable investments.
• Similar allegations have been levied against this Geneos broker.

What Can I Do If I Lost Money with Geneos Wealth Broker?

Contact a securities attorney for a free case evaluation. Our securities attorneys have track records of securing settlements for clients in a timely manner. Kurta Law attorneys are experts on FINRA arbitration, the process that most investors are required to go through rather than suing in civil court. Call (877) 600-0098 to speak with an experienced investment fraud lawyer today.