Phoenix Financial Services

Kurta Law is investigating recommendations by brokers from Phoenix Financial Services (CRD#: 144403). Investors should know that the firm has employed brokers with investor disputes on their records, and should contact a securities attorney if they believe their broker has engaged in misconduct. Phoenix Financial Services is headquartered in New York, New York.

Phoenix Financial Services also operates as Blackwall Capital Markets, PHX Financial, and Grandview Capital.

Fees and Conflicts of Interest

Phoenix Financial Services is registered as a broker-dealer and investment advisory firm and describes the fees and conflicts of interest associated with its business in its Customer Relationship Summary (Form CRS):

• You’ll be charged commissions on each transaction, including equity and option trades. These commissions may be charged as mark-ups or mark-downs on transactions, or as a fixed dollar amount. Commissions may be based on your trading frequency, type of investment product, account and transaction size, liquidity, and other factors.
• Phoenix Financial Services and its clearing firm also charge ticket charges, postage and handling fees, and other fees.
• For alternative investments, you’ll pay differing fees depending on the individual product, such as placement agent and management fees.
• For some of the firm’s investment banking offerings, Phoenix Financial Services may act as principal underwriter.
• Fixed-income transactions typically charge commissions as mark-ups/mark-downs connected to the security’s market price.
• The firm also receives compensation from third parties that incentivize the firm to recommend certain investments.
• Brokers are compensated through the commissions and fees charged on transactions, and certain supervisors and principals also receive a percentage of the compensation earned by brokers they supervise.

Broker-Dealer Services

Phoenix Financial Services also offers the following investment products, as well as traditional stocks and bonds. However, investors should be aware that these products can feature too much risk for most retail investors.

• Equities
• Fixed-income securities
• Options
• Mutual funds
• Exchange-traded funds (ETFs)
• Real estate investment trusts (REITs)
• Alternative investments
• Private placements

Regulatory Actions

Phoenix Financial Services discloses its history of regulatory actions in its detailed BrokerCheck record, including regulatory actions by FINRA and the SEC.

Alleged Reg-BI Violations

On October 16, 2024, the Securities and Exchange Commission initiated a regulatory action against Phoenix Financial Services, alleging that a firm representative recommended a short-term, high-volume investment strategy to eight clients from January 2019 to October 2021 without a reasonable basis to believe the strategy was in their best interests.

The SEC alleged that it would have been functionally impossible for the clients to achieve positive returns when following this strategy. The firm and broker allegedly generated over $400,000 in commissions and fees from these accounts.

The SEC censured the firm, fined it $180,000 and ordered it to pay disgorgement of $142,995.19, and prejudgment interest of $24,993.85. The SEC also ordered Phoenix Financial Services to cease and desist from future violations of Securities Exchange Act of 1934 Rules L-1(A)(1), 15L-1(A)(2)(II) and 15L-1(A)(2)(IV), better known as Regulation Best Interest.

FINRA Censure

On December 18, 2020, Phoenix Financial Services consented to the entry of findings that it allegedly failed to maintain a supervisory system reasonably designed to achieve compliance with securities laws concerning unsuitable excessive trading in investor accounts from January 2013 until April 2019.

According to a Letter of Acceptance, Waiver & Consent (AWC), Phoenix Financial Services allegedly failed to reasonably supervise two brokers’ trading activity, which allegedly included unsuitable options trading. These brokers’ trades allegedly resulted in approximately $550,000 in investor losses and commissions of more than $350,000.

The firm allegedly also failed to conduct and document reasonable investigations of five private placement offerings before recommending them to clients from 2017-2018, and allegedly had no supervisory system in place to prevent the general solicitation of private placement offerings.

FINRA censured Phoenix Financial Services and ordered the firm to pay a $50,000 fine and $356,711 in restitution to clients, plus interest. The firm was also ordered to review its supervisory systems to achieve compliance with certain securities laws and FINRA Rules. You can read the full AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of the following current or former brokers associated with Phoenix Financial Services who have records of investor disputes. Investors who have concerns about their broker should speak to a securities attorney.

• Daniel Diaz: https://www.kurtalawfirm.com/blog/daniel-diaz/ 
• Carl Cirelli: https://www.kurtalawfirm.com/blog/carl-cirelli/ 
• Sean Sherwin: https://www.kurtalawfirm.com/blog/sean-sherwin/ 
• Jason Walsh: https://www.kurtalawfirm.com/blog/jason-walsh/ 
• Mark Hermes: https://www.kurtalawfirm.com/blog/mark-hermes/ 
• Aramis Guerin: https://www.kurtalawfirm.com/blog/aramis-guerin/ 
• Brandon Leon: https://www.kurtalawfirm.com/blog/brandon-leon/ 

Kurta Law Can Help

Investors who lost money working with a Phoenix 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.