The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Barry Richter. According to his publicly available FINRA BrokerCheck report, Barry Richter has been the subject of multiple customer disputes.

Barry Richter is a Pennsylvania based securities broker. He has worked in the securities industry for thirty-four years. During his career, he has been registered with four different securities firms.

His Registrations

  • Halpert, Obertst and Company (1985-1987)
  • UBS Painewebber (1987-2002)
  • Morgan Stanley (2002-2008)
  • Raymond James (2008-Present)

The Allegations

  • In October 1994, a customer alleged that Barry Richter made material misrepresentations, over-concentrated their account, and recommended unsuitable securities. This case was settled for $17,500 in damages.
  • In July 1999, a customer alleged that Barry Richter made material misrepresentations concerning their account. This case was settled for $7,500 in damages.
  • In April 2000, another customer alleged that Barry Richter made material misrepresentations. This case was settled for $5,000 in damages.
  • In May 2000, a customer alleged that Barry Richter told her that she was investing in a certificate of deposit when her investment was actually in a bond. This case was settled for $5,000 in damages.
  • In June 2000, customers alleged that Barry Richter never advised them that the stepdown CDs they invested in had a twenty year maturity date, that the interest rate would go down after the first year, or of the risks involved with said investment. This case was settled for $10,072 in damages.
  • In January 2018, customers alleged that Barry Richter over-concentrated their account in a highly unsuitable manner. This case was settled for $30,000 in damages.

What Does This Mean?

Over-concentration can be detrimental to investors. There are multiple different ways that a securities broker can over-concentrate their customers’ accounts. One way is by concentrating the account in one of a couple investments. When an investor’s account is over-concentrated in a single security, the success of their account becomes entirely dependent on that one investment. Investor’s portfolios need to be properly diversified so that if the value of one security drops, the value of the investor’s portfolio is only slightly affected.

The other way that an investor’s account can be over-concentrated is by the broker only recommending securities with identical risk levels. It is not uncommon for some investors’ accounts to be over-concentrated in a number of securities that are all highly unsuitable for them. This means that these securities carry risk that is usually contrary to their previously stated investment objectives. When an investor with more modest investment objectives has their account over-concentrated in nothing but high risk securities, it is highly unsuitable for them.

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. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Barry Richter, please contact Oakes & Fosher for a free and private consultation.