First Allied Receives Customer Complaint Regarding Non-Traded REITs

Customer Dispute Alleges Broker’s Recommendations Were Misleading, Misrepresented, and Unsuitable

According to publicly available information from the Financial Industry Regulatory Authority (FINRA), First Allied Securities broker William Frederick Fox (CRD#: 1522234) was the subject of a customer dispute regarding recommendations to invest in non-traded Real Estate Investment Trusts (REITs), private placements, equipment leasing programs, oil and gas programs, and annuities. The customer alleges that the advisor’s recommendations in these investments “from the early 2000’s through 2015, were misleading, misrepresented, and unsuitable.”

As noted in his public FINRA record, Mr. Fox has over 30 years of experience as a registered broker. He has been employed with First Allied Securities for the past five years. This is the second time his conduct was the subject of a customer dispute while with the brokerage firm. In 2016, a customer dispute was settled in the amount of $70,000. The customer alleged that “the advisor’s recommendation to invest in private placement REIT’s was not appropriate.”

Non-traded REITs may be too risky and unsuitable for many investors. Such investments usually have high fees and limited liquidity. A stockbroker must adequately disclose all risks and ensure that they are making suitable recommendations based on an investor’s risk tolerance. Additionally, a brokerage firm has a duty to supervise its agents. If an investor suffers losses as a result of unsuitable recommendations, the brokerage firm may be liable.

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Have you sustained significant losses due to a broker’s misleading, misrepresented, or unsuitable recommendations? You might be entitled to compensation through a FINRA Arbitration. Please contact Brian Levin for a free case evaluation at (305) 402-9050 or contact@levinlawpa.com. Levin Law accepts most cases on a contingency-fee basis, meaning that you would not be obligated to pay Levin Law’s attorney fees unless we recover money on your behalf.

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