Steve Franko: FINRA Suspends Independence Capital Advisor

Mt. Vernon, Ohio financial advisor Steve Franko (CRD# 2157707) was recently suspended and fined in connection with allegations relating to the sale of GWG L Bonds. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Independence Capital.

A Letter of Acceptance, Waiver, and Consent (No. 2022074289901) describes FINRA’s disciplinary action against Mr. Franko. Signed in November 2025, it alleges that he recommended GWG L Bonds to three retail investments. In one case, he recommended a $50,000 bond to a 64 year old customer with a low risk tolerance and an investment objective of income; in a second case, he recommended a $25,000 L Bond to a 66 year old customer with a low risk tolerance and an investment objective of income; and in a third case, he recommended a $120,000 bond to a 67 year old customer with a moderate risk tolerance and an investment objective which, again, was income.

Although the prospectus for the bonds stated that they “could be considered speculative” and “involved a high degree of risk,” and that they were “only suitable for persons with substantial financial resources,” in none of the three cases did the customer have an objective of speculation. FINRA found that Mr. Franko, who earned $5,640 in commissions, did not exercise reasonable diligence and care to ensure that his recommendations were in the customers’ best interest. As a result, it found he violated the SEC’s Regulation Best Interest and FINRA Rule 2010. He was ordered to pay a fine of $5,000 and suspended for three months.

According to the Financial Industry Regulatory Authority, Steve Franko holds 32 years of securities industry experience. Based in Mt. Vernon, Ohio, he has been registered as a broker and an investment advisor with Independence Capital since 2000 and 2014, respectively. His past registrations include Essex National Securities, MFI Investments Corporation, John Hancock Distributors, and John Hancock Mutual Life Insurance Company. His credentials include the passage of four securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Combined State Law Examination, or Series 66; the General Securities Representative Examination, or Series 7; and the Investment Company Products/Variable Contracts Representative Examination, or Series 6. He is licensed in Ohio. (Information current as of November 18, 2025.)

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