As a former financial advisor and legal expert with over a decade of experience, I’ve seen my fair share of investor complaints and the devastating impact they can have on both the investors and the advisors involved. The recent complaint against Brandon Capps, a Claremont, California-based financial advisor with Velocity Wealth Management, is a prime example of the seriousness of these allegations and the potential consequences they carry.
According to FINRA records, the complaint, filed in November 2024, alleges that Mr. Capps made misrepresentations regarding advisory products and provided “inaccurate and misleading fee and compensation information” while representing Park Avenue Securities. The pending complaint alleges a staggering $750,000 in damages, which is no small sum for any investor.
So, what does this mean for investors? It’s a stark reminder of the importance of thoroughly vetting your financial advisor and understanding the products and services they offer. It also highlights the need for transparency in fee structures and compensation, as these can significantly impact your investments over time.
The Advisor’s Background
Brandon Capps has been in the securities industry for 19 years, with a majority of that time spent at Park Avenue Securities, where he operates under the name Velocity Wealth Management. According to his firm’s website, Mr. Capps specializes in serving dentists, physicians, executives, and pre-retirees, and prides himself on providing “world-class financial advisory services and elite customer service.”
However, the recent complaint raises questions about the quality of advice and information provided to clients. It’s worth noting that this is not the first complaint against Mr. Capps; his BrokerCheck report discloses one other investor complaint, though details are not provided.
Understanding FINRA Rules
FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the conduct of financial advisors and brokerage firms. FINRA Rule 2020 prohibits advisors from engaging in any manipulative, deceptive, or fraudulent practices, which includes making misrepresentations or providing inaccurate information to clients.
In simple terms, this means that advisors have a responsibility to be truthful and transparent with their clients about the products they recommend, the fees they charge, and any potential conflicts of interest. Failure to do so can result in serious consequences, including fines, suspensions, or even a permanent ban from the securities industry.
Lessons Learned
The complaint against Brandon Capps serves as a cautionary tale for both investors and advisors alike. For investors, it underscores the importance of due diligence when selecting a financial advisor. This includes researching their background, reading their BrokerCheck report, and asking questions about their experience, investment philosophy, and fee structure.
For advisors, it’s a reminder of the sacred trust placed in us by our clients and the high standards to which we are held. As the famous investor Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” Advisors must prioritize transparency, honesty, and putting their clients’ interests first, always.
It’s worth noting that not all financial advisors engage in misconduct. In fact, according to a 2021 FINRA study, only about 1.5% of advisors have any disclosed disciplinary events on their record. However, as the saying goes, “one bad apple can spoil the bunch,” and it’s up to all of us in the financial services industry to hold ourselves and our colleagues accountable to the highest ethical standards.
As the complaint against Brandon Capps moves forward, it will be important to watch how it unfolds and what, if any, consequences result. In the meantime, let this serve as a reminder to always be vigilant, ask questions, and don’t be afraid to speak up if something doesn’t seem right. Your financial future depends on it.
