Texas Stockbroker Purportedly Earned High Commissions From Illiquid Alternative Investments
If you are an investor who was sold alternative investments by First Allied Securities broker William Fox, you may have grounds for an investor claim. Fox, an Austin, TX-based registered representative, has been accused by at least one customer, who already filed a Financial Industry Reguinveslatory Authority (FINRA) claim, of not performing the proper due diligence before recommending that the claimant invest over $2M in retirement funds in illiquid, poor quality alternative investments.
This included nontraded real estate investment trusts (nontraded REITs), annuities, private placements, equipment leasing, and oil and gas investments. The sale of these investments to the claimant resulted in Fox earning $140K in commissions and an investment advisory fee.
Shepherd Smith Edwards and Kantas (SSEK Law Firm) is speaking to investors who received similar investment recommendations from William Fox or any other First Allied Securities stockbroker. Our Texas investment fraud lawyers would like to offer you a free, no-obligation case consultation to help you explore your legal options. Call us today at (737) 241-2381.
First Allied Securities Accused of Failure to Supervise
According to William Fox’s BrokerCheck record, he has been a registered representative for over thirty years, including five with First Allied Securities. Previous to that he was a New England Securities broker. The claimant was Fox’s client while he was at New England Securities and then later with First Allied Securities.
A previous broker fraud claim naming Fox from 2016 makes similar allegations of inappropriate investment recommendations. That customer dispute was settled for $70K.
Brokerage firms must properly supervise their registered representatives and their activities. Losses incurred by investors due to the negligent or fraudulent actions of brokers can be grounds for investor claims against their broker-dealers.
Alternative Investment Fraud
Alternative and illiquid investments are not for every type of investor. Over the years, SSEK Law Firm has successfully pursued securities claims involving private placements, nontraded REITs, oil and gas investments, and other investments on behalf of our clients. We’ve helped thousands of investors to collectively recover many millions of dollars.
In the wake of COVID-19, SSEK Law Firm has implemented all the necessary safety and health precautions to keep our clients and our team safe, including transitioning to video and conference calls. We continue to help investors fight for the financial recovery they are owed.
Contact us today online or call us on (737) 241-2381 if you believe that you have suffered losses due to William Fox being your broker or if you’ve worked with any other First Allied Securities broker.