Metairie, LA Broker Allegedly Made Unsuitable Recommendations to Retirees
If you suffered serious investment losses from working with FSC Securities Corp. stockbroker and Nettworth Financial investment advisor, Frank Briseno III, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover your losses.
Briseno, who is a Metairie, Louisiana broker, also co-ran Nettworth Financial Group with Craig Accardo, another FSC Securities broker. The New Orleans investment advisory firm, which may no longer be in operation, has been accused by more than two dozen retirees of unsuitably selling them real estate investment trusts (REITs) while generating high commissions.
In Louisiana, our Metairie investment fraud lawyers are looking into complaints by former and current customers of Briseno, who, along with his son, Frank Briseno IV, and Craig Accardo, we have been investigating for some time now. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) at (504)-324-0252 or by using our online form.
FSC Securities Settled with One Customer of Briseno’s for $3.5M
In the latest customer dispute, brought in May, the claimant is seeking $100K in damages. Briseno allegedly gave poor advice to invest in variable annuities and non-traded REIT investments. An earlier customer dispute from 2019 was settled by FSC Securities for $3.5M. According to BrokerCheck, that claimant had sought just $5K in damages.
A third customer dispute, from 2017, alleging misrepresentations of non-traded REITs was denied.
Frank Briseno III has worked 37 years in the industry. Previous to working with FSC Securities, he was a registered representative at other broker-dealers, including InterSecurities Inc., Dean Witter Reynolds, and Pw Securities.
New Orleans Retirees Blame Nettworth Financial for Their Losses
According to NOLA Media Group, as of last year, at least 30 retirees from the New Orleans area have come forward accusing Briseno and Accardo, through Nettworth Financial, of poorly and unsuitably investing their money in high-risk investments.
This reportedly included REITs such as American Finance Trust, Inc. (AFIN). The senior real estate investors contend that this caused them significant losses. (American Finance Trust has since come under fire for misleading investors. The REIT’s value has plunged by over 50% since it was listed on Nasdaq last year.)
Some of these older investors reportedly entrusted hundreds of thousands of their hard-earned savings to NettWorth Financial. They claim that the two men misrepresented these investments so as to make high commissions from these sales even as they knew that the retirees wanted only low-risk investments and to protect their capital.
Meanwhile, the Nettworth Financial advisors and FSC Securities brokers allegedly sought to conceal how they were making money from the sales, which is said to have included 5-10% commissions.
Brokerage Firm Negligence
Often, when investment advisors operating their own firm are accused of broker fraud or negligence, their broker-dealer of record at the time can be held liable for damages. It is the duty of a brokerage firm to ensure that their registered representatives are acting responsibly and are not participating in negligent behavior.
Our New Orleans securities fraud attorneys have been fighting for Louisiana investors, including retirees and seniors, for 30 years. Call SSEK Law Firm at (504)-324-0252 to request your free case consultation.