Haselkorn & Thibaut, a leading national investment fraud law firm, has opened an investigation into Steve Franko, a financial advisor based in Mt. Vernon, Ohio, registered with Independence Capital (CRD# 2157707). If you are an investor who has worked with Steve Franko or Independence Capital, it is important to be informed about recent regulatory actions, his background, and what steps you may take to protect your investments.
Overview of Steve Franko – Independence Capital, Mt. Vernon, Ohio
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Steve Franko has been a registered broker and investment advisor in the securities industry for over 32 years. His professional registrations include:
- Current affiliation with Independence Capital since 2000 (broker) and 2014 (investment advisor).
- Previous registrations at Essex National Securities, MFI Investments Corporation, John Hancock Distributors, and John Hancock Mutual Life Insurance Company.
Throughout his career, Steve Franko has passed multiple securities industry qualifying exams:
- Securities Industry Essentials Examination (SIE)
- Uniform Combined State Law Examination (Series 66)
- General Securities Representative Examination (Series 7)
- Investment Company Products/Variable Contracts Representative Examination (Series 6)
He is currently licensed in Ohio.
Recent FINRA Disciplinary Action: What Investors Need to Know
In November 2025, Steve Franko was suspended and fined by FINRA (Financial Industry Regulatory Authority) in connection with the sale of GWG L Bonds to three customers. The action was detailed in a Letter of Acceptance, Waiver, and Consent (Case No. 2022074289901).
| Customer | Bond Sold | Risk Tolerance | Investment Objective |
|---|---|---|---|
| 64 years old | $50,000 GWG L Bond | Low | Income |
| 66 years old | $25,000 GWG L Bond | Low | Income |
| 67 years old | $120,000 GWG L Bond | Moderate | Income |
Key findings:
- Each customer’s objective was income, with a low or moderate risk tolerance.
- The GWG L bond prospectus stated these products were speculative and high risk, intended only for those with substantial financial resources and suitable for investors with a speculative objective.
- Steve Franko did not perform reasonable diligence or care to ensure his recommendations were in the best interest of the clients.
- He earned $5,640 in commissions from these sales.
- This conduct violated SEC’s Regulation Best Interest and FINRA Rule 2010.
- His penalties included a 3-month suspension and a $5,000 fine.
Steve Franko’s Record: A Timeline of Disclosures and Complaints
As of the most current records available (April 2024):
- No customer complaints (open or closed) were reported.
- No FINRA arbitrations, state actions, or civil litigation related to his conduct were noted.
- No prior regulatory or criminal disclosures were on file up to that time.
You can view his registration details and background on FINRA BrokerCheck.
Red Flags and What This Means for Investors
While Steve Franko previously maintained a clean record for decades, the FINRA action raises red flags for current and prospective investors. Specifically:
- Suitability concerns: Recommending high-risk, speculative investments to those with low or moderate risk profiles.
- Best interest standard: Failure to follow SEC’s Regulation Best Interest may indicate system-level issues or inadequate due diligence.
- Lack of upfront transparency: The fact that investors were not aware of the risks at the point of sale is a potential red flag, especially for retirees and those seeking stable income.
Practical Steps for Investors Affected by GWG L Bond or Similar Sales
If you or a loved one purchased GWG L Bonds or any complex or high-risk product through Steve Franko of Independence Capital, consider the following steps:
- Gather and review account statements for disputed or underperforming transactions.
- Document communications – emails, call notes, or letters regarding the sales.
- Request written rationale for any investments you do not understand or that seem inconsistent with your goals.
- Contact an experienced investment fraud attorney for a free, confidential review.
Haselkorn & Thibaut: National Investment Fraud Attorneys Working For You
Haselkorn & Thibaut (investmentfraudlawyers.com) is a national law firm with over 50 years of combined experience, a 98% success rate, and millions recovered for investors. Our attorneys are experienced in pursuing claims against financial advisors and broker-dealers for unsuitable investment recommendations, including GWG L Bonds and similar alternative or high-risk products. No recovery, no fee.
Our team is actively investigating claims involving Steve Franko and Independence Capital. If you believe you were not fully informed of the risks or your investment was unsuitable for your objectives and risk tolerance, we encourage you to reach out today.
Take Action – Free and Confidential Consultation
If you have questions about your investments or suspect wrongdoing related to your accounts with Steve Franko of Independence Capital, contact Haselkorn & Thibaut at 1-888-994-8066 for a free, confidential consultation. Our review is thorough, and there is never a fee unless we recover funds for you. Protect what you’ve worked for – let us help you seek answers and potential recovery.
Don’t wait. Reach out to Haselkorn & Thibaut today and get the information and advocacy you deserve.
