Network 1 Financial Securities
Kurta Law is investigating brokers from Network 1 Financial Securities (CRD#: 13577). The firm is a broker-dealer based in Red Bank, New Jersey.
Network 1 Financial Securities has also operated as Asset Planning & Development and StockAmerica, Incorporated.
Fees and Conflicts of Interest
Investors should review the information Network 1 Financial Securities provides in its Customer Relationship Summary (Form CRS):
- You will be charged transaction-based fees, typically in the form of commissions. These fees are negotiable and depend on characteristics like the type of investment and size of transaction.
- For stocks and exchange-traded funds (ETFs), this commission is generally separate from the security price. Bonds and other investments may charge fees in the form of markups or markdowns to their price.
- Mutual funds, variable annuities, and other investments charge ongoing fees that reduce their value over time.
- Variable annuities also charge surrender fees if you sell the investment early.
- Network 1 Financial Securities may charge for additional services such as investment strategy development.
Broker-Dealer Services
Besides stocks and bonds, Network 1 Financial Securities allows investors to invest in the following vehicles. However, these products may feature excessive risk for most retail investors.
- Mutual funds
- Exchange-traded funds
- Variable life insurance
- Variable annuities
Regulatory Actions
Network 1 Financial Securities discloses its history of regulatory actions, including multiple allegations of supervisory issues, on its detailed BrokerCheck page.
2025 AML Program Allegations
On March 4, 2025, Network 1 Financial Securities consented to the findings that it allegedly developed an anti-money laundering compliance program (AMLCP) from 2019-2025 that was not reasonably designed to comply with the requirements of the Bank Secrecy Act.
According to a Letter of Acceptance, Waiver & Consent (AWC), the firm’s Customer Identification Program allegedly did not reasonably verify the identity of foreign investors opening accounts or many investors who opened accounts for the purpose of investing in initial public offerings (IPOs) for small-cap issuers.
The AWC further alleged that the firm did not preserve its employees’ off-channel business communications.
Network 1 Financial Securities consented to a censure, $400,000 fine, and an undertaking to retain an independent consultant. You can read the AWC here.
Alleged Failure to Supervise
In an AWC filed on August 31, 2023, FINRA alleged that Network 1 Financial Securities failed to establish and maintain a supervisory system reasonably designed to comply with FINRA Rule 2111’s suitability requirements and the Care Obligation of Regulation Best Interest with regard to excessive trading.
The firm’s Written Supervisory Procedures (WSPs) allegedly did not specify how firm supervisors should use certain factors to identify potential excessive trading or provide reasonable guidance as to what they should do to address an excessively traded account.
Network 1 Financial Securities’ WSPs were allegedly also not reasonably designed to comply with Regulation Best Interest.
Network 1 Financial Securities consented to a censure, $200,000 fine, restitution of $533,587 plus interest, and an undertaking to revise the issues alleged in the AWC. You can access the full AWC here.
2020 AML Program Allegations
On August 14, 2020, Network 1 Financial Securities consented to the entry of findings that it allegedly failed to develop a written AML program and to establish policies and procedures reasonably designed to identify and report potentially suspicious transactions from 2016-2017.
The firm allegedly failed to detect red flags of suspicious trading in microcap securities and insider trading.
The AWC further alleged that the firm failed to provide several categories of discovery in a FINRA arbitration proceeding between July 2018 and July 2019.
Network 1 Financial Securities consented to a censure, fine of $60,000, and an undertaking to revise its written AML program. You can access the AWC here.
Brokers with Misconduct Allegations on Their Records
Network 1 Financial Securities works with brokers with allegations of misconduct on their records, such as violations of FINRA rules.
Kurta Law is aware of the following brokers currently or formerly associated with Network 1 Financial Securities who have allegations of misconduct on their BrokerCheck records:
- Patrick Teutonico: https://www.kurtalawfirm.com/blog/patrick-teutonico/
- Peter Viglione: https://www.kurtalawfirm.com/blog/peter-viglione/
- Andrew Grant: https://www.kurtalawfirm.com/blog/andrew-grant/
- Eric Nicolassy: https://www.kurtalawfirm.com/blog/eric-nicolassy/
- Joseph Todaro: https://www.kurtalawfirm.com/blog/joseph-todaro/
- Jonathan Ebel: https://www.kurtalawfirm.com/blog/jonathan-ebel/
- Eric Baron: https://www.kurtalawfirm.com/blog/eric-baron/
- Carl Antaki: https://www.kurtalawfirm.com/blog/carl-antaki/
Kurta Law Can Help
Investors who lost money working with a Network 1 Financial 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.