Certainly not all of those enforcement actions by federal regulators target financial advisers. But many do. They are clear evidence of the potential for fraud when it comes to your money. Luckily, investors have many sources with which to check the backgrounds of advisers, brokers and others who want their business. And there are plenty of legitimate professionals, so it won't be hard to find one.
Referrals are a good place to start.
Ask friends, neighbors, family and co-workers if they know a broker, planner or other financial adviser whom they would recommend. Ask what they like about the person, as well as what they dislike. The next step is to take those names to federal and state regulators. You'll be able to find out whether the adviser or broker is registered with regulators and whether he or she has a history of legal problems. Some advisers fall under the scrutiny of specific groups.