Financial Advisor in Ludlow, Massachusetts is Named in Two Pending Customer Disputes
Joseph Anthony Leonczyk, a Commonwealth Financial Network registered representative, is currently named in two pending customer disputes in which the claimants allege that he unsuitably recommended that they invest in FS Energy and Power Fund (FSEP), FS KKR Capital Corp. (FSK), and other alternative investments. The claimants are seeking $65K and $100K, respectively, for their losses.
FS Energy and Power and FS KKR Capital investors have both suffered significant losses. FS KKR Capital underwent a reverse split last year that caused its value to drop. FS Energy and Power stopping distributions while possibly heading for bankruptcy. Its latest share price on the secondary market is $1/share.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com), our broker fraud attorneys are speaking to customers of Commonwealth Financial Network broker Joseph Leonczyk or any other stockbroker who sold them investments in FS Energy and Power Fund or FS KKR Capital. Contact SSEK Law Firm today.
Massachusetts Retirees Say They Lost Savings From FS Energy and Power & FS KKR Recommendations
Both pending Financial Industry Regulatory Authority (FINRA) arbitration claims naming Joseph Leonczyk were brought late last year.
One of the customer disputes is from Massachusetts retirees who say they had only wanted to invest in products that were low risk and would make them money. Instead, Leonczyk allegedly concentrated more than $80K of their money into FS KKR Capital and FS Energy and Power Fund, which charged high commissions.
The claimants contend that they lost $100K of their life savings. Now, they are alleging breach of fiduciary duty, negligence, and negligent supervision by Commonwealth Financial Network.
According to BrokerCheck, there are two other customer disputes naming Leonczyk but they were denied. Both had alleged unsuitability.
Joseph Leonczyk is also a registered investment advisor. Other firms where he has worked during his 23 years of experience in the industry include PrimeVest Financial Services, EQ Financial Consultants, and The Equitable Life Assurance Society of the United States.
FS Energy and FS KKR are Both Business Development Companies
FS Energy and Power Fund (also known as Franklin Square Energy and Power Fund), is a non-traded business development company (BDC) that invests mostly in debt and also in equity securities of private US energy and power companies. FS KKR Capital is a publicly-traded BDC that invests primarily in debt securities.
While business development companies generally offer higher yields than common stock, there are risks involved for investors including:
- BDCs generally hold illiquid investments in non-publicly traded companies
- They can be adversely affected by personnel changes
- They may be vulnerable to interest rate fluctuations and tend to charge high management fees.
- They are not suitable for many retirees and other conservative or retail investors.
Commonwealth Financial Network Named in Other FS Energy and Power Investor Claim
Commonwealth Financial Network was recently named in another FINRA arbitration claim brought by an investor who worked with the firm through Kevin Dick Investment Management Group in Arizona. The claimant is seeking $120K damages for losses sustained from investing in FS Energy and Power Fund and other alternative investments.
To find out whether you have grounds for a broker fraud claim against Commonwealth Financial Network for your FS Energy and Power Fund or FS KKR Capital losses, call SSEK Law Firm at (800) 259-9010 today.