The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Adam Fritzsche. According to his publicly available FINRA BrokerCheck report, Adam Fritzsche was the subject of a FINRA sanction.

Adam Fritzsche operated most recently as a Georgia based securities broker. He worked in the securities industry for nineteen years. During his career, he was registered with four different securities firms.

His Registrations

  • Dean Witter Reynolds (1997-1999)
  • LPL Financial (1999-2012)
  • Citizens Securities (2012-2016)
  • IFS Securities (2016-2017)

The Allegations

Adam Fritzsche was officially sanctioned by FINRA in February 2017. The findings in this matter state that he made unsuitable investment recommendations to multiple customers that were contrary to their investment objectives. These alleged recommendations resulted in an over-concentration of the customers’ liquid net worth in an alternative investment. This investment was speculative, illiquid, and risky and were not suitable for unsophisticated investors with conservative investment objects–of which these customers in question were. Due to these alleged actions, Adam Fritzsche was suspended by FINRA from acting as a securities broker in any fashion for a period of one year.

What Does This Mean?

The term “alternative” investments is usually associated with privately traded securities, also known as private placements. Private placements are not traded on public securities exchanges and in turn lack any kind of over-sight necessary to adequately monitor securities.

Private placements are incredibly speculative and high-risk securities that are unsuitable for most investors. Due to their private nature, they are also incredibly illiquid securities. This is because the stated market value does not always equate to the amount a shareholder could receive should they need to liquidate.

Despite the glaring problems with these products, securities brokers, like Adam Fritzsche, continue to push these products onto investors that are clearly not suited for them. One of the major reasons for this is the incredibly large commissions that the investor is charged when they purchase a private placement. Which is yet another aspect of private placements that is detrimental to investors.

Investors who have lost money after being invested in speculative and illiquid private placements may be entitled to damages.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. Oakes & Fosher dedicates its entire legal practice to helping investors who have lost money in this fashion. If you, or someone you know, have lost money investing with Adam Fritzsche, please contact Oakes & Fosher for a free and private consultation.