FINRA has ordered American Portfolios Financial Services, Inc. to pay $1,232,939 in restitution, plus interest, to 295 customers. The regulator also fined the firm $400,000 for failing to supervise representatives who repeatedly recommended selling unit investment trusts before maturity.
The settlement became public on September 22, 2026, through a letter of acceptance, waiver and consent dated August 31, 2026. Combined, the sanctions total roughly $1.6 million for the Holbrook, New York broker-dealer.
What FINRA found at American Portfolios
American Portfolios Financial Services operates under CRD number 18487, per its BrokerCheck profile. The firm became part of Osaic Wealth, Inc. in October 2024, and FINRA’s findings cover conduct from January 2018 through that transition.
During the review period, the firm’s customers purchased approximately $470 million in UITs. FINRA concluded the firm never built a supervisory system capable of catching representatives who pushed clients out of the products ahead of maturity.
Key numbers in the settlement
| Metric | Figure |
|---|---|
| Restitution | $1,232,939 plus interest |
| Customers receiving payments | 295 |
| Fine | $400,000 |
| UITs purchased by customers, 2018 to 2024 | Approximately $470 million |
| Two-representative team early-sale rate | About 61 percent of recommendations |
| Third representative early-sale rate | About 78 percent of recommendations |
| Individual restitution range | $102.27 to $399,055.29 |
How early UIT sales drained accounts
Unit investment trusts hold a fixed portfolio and end on a set maturity date, often after 15 or 24 months. The products are generally built to be held until that date.
Selling early and buying a new UIT triggers a fresh sales charge. FINRA found a two-representative team recommended early sales roughly 61 percent of the time, with those customers holding their trusts for only about half of their terms on average.
The team generally rolled proceeds into new UITs carrying new sales charges. A third representative recommended early sales about 78 percent of the time.
In total, the three representatives caused 295 investors to pay $1,232,939 in unnecessary costs and fees, according to the regulator.
The supervision failure behind the case
Federal rules required the firm to police recommendations under FINRA Rule 2111 and the Regulation Best Interest care obligation. FINRA found the firm’s written procedures asked reviewers to assess suitability without providing any actual method for doing so.
“Protecting investors and ensuring market integrity is central to FINRA’s mission, and this action will return more than $1.2 million to customers who paid unnecessary costs,” said Bill St. Louis, FINRA’s Executive Vice President and Head of Enforcement.
The regulator reached similar settlements with six firms after a 2016 sweep, returning more than $16.8 million to roughly 10,000 investors. This week’s action extends that same enforcement thread.
What affected investors can do now
The 295 affected customers will receive restitution automatically, with individual payments ranging from $102.27 to $399,055.29. The settlement covers unnecessary sales charges plus interest.
Investors who held UITs at American Portfolios between January 2018 and October 2024 should pull their account history. A pattern of early sales followed soon after by new UIT purchases is the signature to look for.
Accepting restitution under this settlement does not prevent customers from pursuing separate claims for other losses through FINRA arbitration.
Frequently asked questions about the American Portfolios settlement
Who qualifies for restitution?
The 295 customers FINRA identified as paying unnecessary sales charges on early UIT sales between January 2018 and October 2024 qualify. Individual payments range from $102.27 to $399,055.29 plus interest.
Does accepting restitution waive other claims?
No. The settlement returns unnecessary sales charges, but customers may still pursue separate claims for other losses through FINRA arbitration. A securities attorney can review what applies to a specific account.
How can investors check their UIT history?
Request statements covering all UIT purchases and sales from the period. A pattern of early sales followed soon after by new UIT purchases is the signature FINRA flagged.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in investment recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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