USCA Securities

Kurta Law is investigating recommendations made by USCA Securities. USCA Securities (CRD #: 103789) is a brokerage firm with its main address in Houston, Texas.

The firm also does business under the following names:

• Ledgewood Capital Management
• USCA Securities
• S. Capital Wealth
• S. Capital Advisors

Regulatory Action

USCA Securities has the following regulatory award listed on its detailed BrokerCheck record.

In 2016, FINRA found USCA Securities liable for a total of $3.7 million to be paid to a group of 18 investors. The investors alleged that “USCA promised that they would employ a disciplined investment model driven by objective market indicators. Claimants alleged that USCA mismanaged their accounts, failed to follow the trading model, failed to implement the promised stop-loss measures, failed to conduct regular reviews, and failed to supervise the accounts.”

You can read a copy of the Award here.

USCA Brokerage Fees

USCA lists the following brokerage fees in its Customer Relationship Summary (Form CRS). Investors should note that these fees vary and are negotiable.

• Stocks and ETFs charge transaction-based fees, also known as commissions. These are separate from the cost of the transaction.
• Bonds also charge commissions, called mark-ups and mark-downs. These fees are built into the price of the bond and may not be obvious.
• Mutual funds, variable annuities, and alternative investments impose additional fees that reduce the value of the investments over time.
• Certain investments, such as variable annuities, come with surrender charges.
• USCA may charge additional fees, including custodian fees, account maintenance fees, and account inactivity fees.

Conflicts of Interest

Investors should be aware of the following conflicts of interest when examining account statements for inconsistencies or unexpected losses.

• Transaction-based charges create an incentive for brokers to encourage you to trade more often.
• USCA Securities brokers have a financial incentive to recommend private placements, USCA feeder funds, USCA Asset Management funds, IPOs, and alternative investments because they are issued and/or sponsored by USCA and its affiliates.
• Brokers may also have a financial incentive to recommend products that compensate the firm when they are sold.
• USCA Securities has an incentive to increase cash balances in the Bank Deposit Sweep Program and to encourage you to increase your assets held at clearing firms.
• Mutual funds and variable annuities provide sales charges and selling concessions for the firm.

USCA Brokers and Investor Allegations 

Kurta Law is aware of the following brokers who have misconduct allegations on their records. This is not necessarily a complete list – contact Kurta Law if you have concerns about your USCA Securities broker.

• John Howle allegedly recommended investments that did not perform. The investor is seeking nearly a half-million dollars.
• Investors are seeking millions of dollars in claims filed against Patrick Mendenhall.
• Derek Su allegedly failed to structure accounts to meet an investor’s retirement goals. The investors are seeking $2.2 million.
• Chris Arnold, a broker formerly registered with USCA Securities, was barred after he allegedly failed to respond to FINRA requests for information.

Kurta Law Can Help

If you lost money working with USCA Securities, contact Kurta Law today. Our attorneys offer free case evaluations and do not collect a fee unless we win your case. We are also experts in FINRA arbitration, which is the dispute resolution platform investment contracts often require investors to use rather than suing in civil court. Call (877) 600-0098 or email info@kurtalawfirm.com today.