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Independent Financial Group

Securities Lawyer Jonathan Kurta
By: Jonathan Kurta Author

Independent Financial Group (CRD #: 7717) is a brokerage firm and advisory firm headquartered in San Diego, California.

This brokerage firm also operates under the following names, according to its BrokerCheck record.

  • Hagerty Stewart & Associates LLC
  • Independent Financial Group
  • IFG Financial Group
  • Hagerty, Van Mourick & Logan
  • Hagerty, Stewart and Associates
  • Hagerty, Stewart & Associates

If you lost money with Independent Financial Group, contact one of our securities attorneys for a free case evaluation today.

Can I Sue Independent Financial Group?

Yes, you can recover losses from Independent Financial Group. However, you may have signed a pre-dispute arbitration clause as part of your investment contract. Pre-dispute arbitration clauses preclude suing in a civil court and require investors to pursue damages through FINRA arbitration instead. Speak to a securities attorney to learn more about your options.

Securities Lawyer Jonathan Kurta
Written by: Jonathan Kurta

Jonathan Kurta is an accomplished securities attorney and a founding partner at Kurta Law.

Independent Financial Group Conflicts of Interest

Under Regulation Best Interest, Independent Financial Group is required to disclose the firm’s conflicts of interest in the Customer Relationship Summary (Form CRS). The firm suggests that investors ask: “How might your conflicts of interest affect me, and how will you address them?”

  • IFG earns a fee when you trade. IFG brokers have an incentive to encourage you to execute more trades.
  • Certain products come with higher commissions than others, which gives your IFG an incentive to recommend certain products over others.
  • Brokers benefit from the firm’s revenue sharing agreements through educational conferences and marketing support. These educational conferences are held by financial product vendors.
  • Independent Financial Group may also share revenue with certain sponsor companies.

IFG Brokerage Account Fees

Keep in mind that brokerage account fees are different from advisory services. If you want to learn more about their advisory account fees, visit their Form CRS.

  • Fees and costs might include account maintenance fees, wire transfer fees, check fees, termination fees, and transfer fees.

There may also be product-related fees, like 12b-1 fees associated with certain mutual funds. The Form CRS recommends that customers review any product-specific document for more information on fees.

Regulatory Actions

Investors should know that this firm has 13 disclosures on its BrokerCheck record. Clients of Independent Financial Group should review the most recent sanctions and fines on the brokerage firm’s record. The firm has allegedly failed to supervise its brokers, leading to unsuitable recommendations.

Alleged Failure to Report Administrative Actions

On February 24, 2023, the New York State Department of Financial Services alleged that IFG failed to report administrative actions taken by the State of South Dakota Department of Labor and Regulation, Division of Insurance, as well as the Texas State Securities Board, within 30 days.

New York imposed a monetary fine of $1,000.

Non-Traditional ETFs and Alleged Failure to Supervise

On April 1, 2021, the State of Texas alleged that an individual registered with IFG traded in non-traditional ETFs, implementing a buy-and-hold strategy that was unsuitable for these investment products, which are designed for short-term use. The brokerage firm allegedly failed to have a supervisory system in place to stop the representative from purchasing leveraged ETFs that he was not approved to purchase. According to the allegations, the firm has agreed to refund customers $276,398.42, in addition to paying Texas a fine of $75,000.

Review the full Disciplinary Order her: Order No. IC21-CAF-01

Alleged Failure to Supervise and Outside Business Activity

According to regulatory action filed by South Dakota on July 22, 2020, IFG failed to properly review and/or evaluate the outside business activity filed by one of its registered agents. This request involved the sale of promissory notes. As part of the terms of the sanction, IFG agreed to pay $18,750 in restitution to investors.

Non-Traded REITs and Structured Products

FINRA and IFG entered into an Acceptance, Waiver, and Consent agreement on April 8, 2021, alleging that IFG had failed to supervise its representative. The representative allegedly sold non-traded REITs and structured products – both risky investments. He allegedly sold these by recommending senior investors liquidate their 401(K)s and pension plans. The supervisor allegedly failed to reasonably investigate red flags. The representative allegedly recommended these investments to investors with little to no investment experience. Supervisors had allegedly raised concerns about investments being incorrectly marked as “unsolicited.” Unsolicited investments are not reviewed for suitability and are therefore subject to less scrutiny.

As part of the terms of the AWC, the broker consented to a fine of $200,000.

Independent Financial Group Brokers

If you lost money with the following IFG brokers, contact a securities attorney today.