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OneAmerica Securities

Kurta Law is investigating possible investor losses for clients of OneAmerica Securities.

OneAmerica Securities (CRD#: 4173) is a dually registered investment advisory firm and brokerage firm with headquarters in Indianapolis, Indiana. It has also done business under the name AUL Equity Sales Corp.

The firm offers the following investment products, some of which may come with significant risks for investors.

Mutual funds
Variable Annuities
Variable Universal Life insurance (VULs): These are proprietary products offered through the firm’s parent insurance company, American United Life Insurance Company.
Exchange-Traded Funds (ETFs)
Unit Investment Trusts (UITs)

Investors should note that OneAmerica Securities brokers are only able to recommend the suite of products offered by their firm. There may be lower-cost investment products that are better suited to investors’ needs available elsewhere.

Advisory Firm and Brokerage Firm Fees

Make sure you understand your financial professional’s title – are they a broker, a financial advisor, or both? Their official title affects how they get paid, and consequently their conflicts of interest when they make recommendations.

Brokerage Firm Fees

Investors who use the firm’s brokerage services can expect to pay a per-transaction fee.
Investments like mutual funds and variable annuities may charge additional fees that reduce the value of the investment over time.

Investment Advisory Fees

The OneAmerica Securities advisory firm charges fees calculated as a percentage of assets under management (AUM).

Advisory firm representatives may offer financial plans that come with fixed fees.
Investors may also elect to have a one-time consultation with an advisor for a flat fee.

Conflicts of interest

The OneAmerica Securities Customer Relationship Summary (Form CRS) discloses the following conflicts of interest:

Rollover Recommendations: Advisors and brokers have a conflict of interest when recommending a rollover from a 401(k) or an IRA to a OneAmerica Securities account.
Proprietary Products: Keep in mind that representatives earn more revenue from proprietary products than they do from others.
Third-Party Payments: Certain products, like mutual funds, feature third-party payments for your broker.
Non-cash compensation: Product sponsors may offer brokers and advisors gifts, meals, and entertainment. These encourage representatives to recommend these sponsors’ products more often.

Allegations of Broker Misconduct

OneAmerica Securities works with brokers who have investor disputes on their BrokerCheck records. Kurta Law is aware of the following current or former OneAmerica Securities brokers with misconduct allegations on their records, but this is not necessarily a complete list. Contact a securities attorney if you have concerns about your broker’s conduct.

Matt Henderson: https://www.kurtalawfirm.com/blog/matt-henderson/
Philip Smith: https://www.kurtalawfirm.com/blog/philip-smith/
John Mangin: https://www.kurtalawfirm.com/blog/john-mangin/
Edward Barrett: https://www.kurtalawfirm.com/blog/edward-barrett/
Alvara Martinez: https://www.kurtalawfirm.com/blog/alvaro-martinez/

Regulatory Actions

OneAmerica Securities’ detailed BrokerCheck record reveals regulatory actions, including one that involves risky option trading.

$75 Million FINRA Fine

On February 13, 2015, OneAmerica Securities entered into an Acceptance, Waiver, and Consent agreement to settle allegations with the Financial Industry Regulatory Authority (FINRA) that the firm failed to make reasonable inquiries or otherwise follow up on multiple red flags that indicated a registered representative was making unsuitable options recommendations.

The red flags included:

Customers who were relatively new to investing had an Options Agreement that stated they had options and commodities trading experience.
The options trading agreement also allegedly overstated the investors’ net worth and indicated they were interested in speculative trading, whereas the customers allegedly stated they wanted long-term growth.

In another instance when the firm allegedly failed to supervise, a OneAmerica Securities broker allegedly caused significant losses in a customer’s account. He allegedly transferred funds from another client’s account to hide the losses.

As part of the terms of the AWC, OneAmerica consented to a $75 million fine.

$20,000 Fine for OneAmerica Securities

Another Acceptance, Waiver, and Consent agreement dated October 31, 2014, alleges the firm failed to keep its brokers’ Form U4s up-to-date. Form U4s are registration documents that include information on investor disputes and any criminal charges. As part of the terms of the AWC, OneAmerica Securities consented to a censure and a fine of $20,000.

Kurta Law Can Help

Investors who lost money after working with a OneAmerica Securities 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.