Many investors are unaware of the legal recourse available to them after losing money due to securities broker negligence and/or fraud. The truth is that investors who have lost money in this fashion may be entitled to damages. The law firm of Oakes & Fosher is heavily invested in representing investors who believe this may be them.

Oakes & Fosher is currently investigating the possible misconduct of former securities broker Angelo Talebi. According to his publicly available FINRA BrokerCheck report, Angelo Talebi has been the subject of numerous customer disputes.

Angelo Talebi was a California based securities broker. He worked in the securities industry for twenty-three years. During his career, he was registered with five different securities firms.

His Registrations

  • Quest Capital Strategies (1992-1995)
  • Securities America (1995-1999)
  • LPL Financial (1999-2012)
  • Royal Alliance Associates (2012-2014)
  • Independent Financial Group (2014-2016)

The Allegations

  • In April 2013, a customer alleged that Angelo Talebi engaged in unsuitable equity trading and excessive use of margin. This case was settled for $125,000 in damages.
  • In August 2013, a customer alleged misrepresentation and unsuitability regarding the purchase of Inland American Real Estate Trust Inc. This case was settled for $78,606 in damages.
  • In March 2014, customers alleged that the income feature, surrender charges, and fees and costs associated with variable annuity purchases were not explained properly. The customers also alleged that these annuities were unsuitable. This case was settled for $35,000 in damages.
  • In April 2014, a customer alleged unsuitability and misrepresentation in connection with the products known as KBS REIT and Leaf Equipment Finance Fund 4. This case was settled for $78,606 in damages.
  • In September 2014, a customer alleged that Angelo Talebi sold them an unsuitable variable life insurance policy. They also alleged that Talebi sold them unsuitable and illiquid REIT investments, mismanaged their account, excessively traded their account, and engaged in an excessive use of margin. This case was settled for $500,000 in damages.
  • In February 2015, a customer alleged unsuitability and failure to disclose risks associated with limited partnership investments. This case was settled for $55,000 in damages.
  • In September 2015, an attorney, on behalf of a customer alleged unsuitability concerning the purchase of LP fund. This case is currently pending. The customer is seeking $40,000 in damages.
  • Also in September 2015, a customer alleged that Angelo Talebi made material misrepresentations concerning their account, excessively traded their account, engaged in unsuitable use of margin, and overall made unsuitable investment recommendations in connection with REITs and variable annuities. This case was settled for $100,000 in damages.
  • In January 2019, customers alleged that Talebi misrepresented details regarding their account and made unsuitable recommendations to invest in variable annuities and REITs. This case is currently pending. The customers are seeking $2.2 million in damages.
  • In April 2019, a customer’s attorney filed a complaint due to concerns of overall suitability. This case is currently pending. The customer is seeking $60,000 in damages.

What Are Non-Traded REITs?

Non-traded REITs, also known as Real Estate Investment Trusts, are privately traded securities not sold on any publicly securities exchanges. Due to their private nature, there is great potential for oversight when dealing with these products. Securities brokers like Angelo Talebi use this potential for oversight to their advantage when trying to sell these products.

The truth is that non-traded REITs are incredibly speculative and illiquid investments that are incredibly unsuitable for investor with more modest investment objectives. Despite their rampant unsuitability, brokers continue to push these products due to the incredibly high commissions they receive when executing these transactions. Which is yet another reason these products are detrimental to customers.

Margin Trading

Margin trading is when the investor borrows money from the broker-dealer to purchase securities. This practice can prove highly unsuitable for investors with more modest investment objectives. This is because even when the value of a security decreases, the owner of the product owes the amount that was borrowed as opposed to the amount the purchased investment is now worth.

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 Angelo Talebi, please contact Oakes & Fosher for a free and private consultation.