BOCA RATON, Fla., March 12, 2025 (GLOBE NEWSWIRE) -- The White Law Group, a national securities fraud and investor protection law firm, announces today the filing of a FINRA arbitration lawsuit on behalf of six Florida investors against Cetera Advisor Networks and Independent Financial Group. The claim alleges that the firms failed to supervise their financial advisor, Ray Weldon, resulting in significant investment losses for the claimants.
FINRA is the regulator that oversees brokers and brokerage firms in the U.S. and provides a forum for dispute resolution for investors.
The lawsuit seeks damages between $500,000 and $800,000, alleging common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
Allegations Against Cetera Advisor Networks and Independent Financial Group
The claim alleges that while working for Cetera Advisor Networks and later Independent Financial Group, Ray Weldon recommended an unsuitable investment strategy involving variable annuities, equities, and leveraged margin investing. He allegedly assured investors that gains from leveraged equity investments would cover expensive annuity premiums and margin interest payments.
Instead, the strategy quickly proved unsustainable. The large margin balance resulted in high interest costs that outpaced investment returns. The annuity premiums also became unmanageable, forcing investors to surrender their policies at a total loss.
Additionally, due to mounting margin interest payments and forced equity sales to avoid margin calls, investors suffered substantial losses in a short period.
Ray Weldon’s FINRA Broker Check Report Indicates Customer Complaints
According to Ray Weldon's FINRA BrokerCheck Report, Weldon has been the subject of at least five (5) customer disputes or FINRA lawsuits dealing with similar issues of unsuitable investment allegations.
How to Recover Investment Losses
According to D. Daxton White, managing partner of The White Law Group, “It is possible that many more investors have suffered devastating losses due to this type of risky trading strategy. They may not understand that brokerage firms have a responsibility to supervise their brokers, or realize they have recovery options.”
Brokerage firms must supervise their brokers to ensure they comply with FINRA rules. If a financial advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.
FINRA Arbitration Attorneys – The White Law Group
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.
Class Action Lawsuit vs. FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm's managing partner, D. Daxton White, is licensed in Florida and began his practice in the Boca Raton area.
Contact: The White Law Group National Securities Fraud Attorneys 125 S Wacker Drive, Suite 300 Chicago, IL 60606 Phone: (312) 238-9650 dax@whitesecuritieslaw.com Whitesecuritieslaw.com
