Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is, investors who have lost money in this fashion may be entitled to damages. The law firm of Oakes & Fosher is interested in hearing from investors who believe that this may be them.
Oakes & Fosher is currently investigating the possible misconduct of former securities broker Aaron Parthemer. According to his publicly available FINRA BrokerCheck report, Aaron Parthemer has been the subject of multiple customer disputes over the course of his career. These complaints were in connection with Parthemer continuously recommending an registered investment known as Global Village Concerns, Inc.
Aaron Parthemer operated most recently as a Florida based securities broker. He worked in the securities industry for twenty years. During his career, he was registered with seven different securities firms.
His Registrations
- L.C. Wegard & Co. (1994-1995)
- Merrill Lynch (1995-1997)
- Barnett Investments (1997-1998)
- Banc of America Investment Services (1998-2006)
- Citigroup Global Markets (2006-2009)
- Morgan Stanley (2009-2011)
- Wells Fargo Advisors (2011-2015)
The Allegations
According to findings released by the United States Securities and Exchange Commission, Aaron Parthemer engaged in selling over $5 million worth of unregistered and illiquid securities in Global Village Concerns, Inc to his Wells Fargo customers. Aaron Parthemer allegedly pitched this outside investment to his customers without conducting the necessary due diligence required to discern how unsuitable this investment really was. He also allegedly failed to conduct the necessary due diligence to determine the accuracy of the information he was conveying to his customers. Parthemer also had a personal stake in the company as he had been issued stock options. This created an undue conflict of interest. Due to these allegations, he was barred by the SEC from acting as a securities broker in any fashion and was fined $160,000.
The Complaints
- In May 2015, a customer alleged negligence, gross negligence, breach of contract, fraud, fraudulent misrepresentation, negligent misrepresentation, fraudulent inducement, and breach of fiduciary duty. This case went to arbitration where the customer was awarded $200,000 in damages. Aaron Parthemer received an identical complaint also in May 2015. This case also went to arbitration where the customer was awarded $700,000 in damages.
- In June 2015, customers alleged that Aaron Parthemer recommended the unsuitable and unauthorized Global Village Concerns, Inc. This case was settled for $1.1 million in damages. He received an identical complaint in June 2016. This case was settled for $228,000 in damages.
- In July 2016, a customer alleged breach of fiduciary duty, negligence, gross negligence, and violations of FINRA rules. This case went to arbitration where the customer was awarded almost $9 million in damages.
- In September 2016, another customer alleged that Aaron Parthemer solicited him to invest in the unsuitable Global Village Concerns, Inc. This case was settled for $120,000 in damages.
- In April 2017, Aaron Parthemer became the subject of a complaint from a customer alleging that he solicited him to invest in the outside Global Village Concerns, Inc. This case was settled for $600,000 in damages.
- In July 2018, a customer alleged that Parthemer solicited him to invest in the unauthorized GVC, Inc. This case is currently pending. The customer is seeking $180,000 in damages.
- In August 2018, yet another customer alleged that Aaron Parthemer solicited them to invest in the unsuitable and unauthorized GVC, Inc. This case is currently pending. The customer is seeking $413,000 in damages.
What Does This Mean?
Securities brokers have a legal obligation to only recommend securities to customers that are suited for them. It is also the policy of most broker dealers that their registered securities brokers are required to get the approval of the firm before they pitch an outside investment. Despite these facts, many securities brokers, like Aaron Parthemer, are continuously tempted to recommend outside investments to their unsuited customers even if the investment had not been approved by their member firm. Investors who have lost money due to the securities brokers recommending them unsuitable, outside investments may be entitled to damages.
Oakes & Fosher Can Help
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Aaron Parthemer, please contact Oakes & Fosher for a free and private consultation.
