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

Charles Frieda was a California based securities broker. He worked in the securities industry for nine years. During his career, he was registered with three different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Citigroup Global Markets (2008-2009)
  • Morgan Stanley (2009-2012)
  • Wells Fargo Clearing Services (2012-2017)

The Allegations

  • In December 2012, a customer alleged that Charles Frieda made unsuitable investment recommendations. This case was settled for $14,800 in damages.
  • In October 2014, a customer alleged that investments Charles Frieda recommended were not in line with their philosophy and risk tolerance. This case was settled for $334,000 in damages.
  • In January 2015, two separate customers alleged that Charles Frieda unsuitably over-concentrated their account in the energy sector. The first case was settled for $87,800 in damages. The second case was settled for $195,000 in damages.
  • In August 2015, customers alleged that Frieda went against their conservative investment objectives when he placed too many of their investments in the risky energy sector. This case was settled for $490,000 in damages.
  • In October 2015, a customer alleged that Charles Frieda misled them, misrepresented their portfolio and was overall negligent with their account portfolio. This case was settled for $180,212 in damages.
  • In November 2015, a customer alleged that Charles Frieda made unsuitable investment recommendations. This case was settled for $163,750 in damages.
  • In January 2016, customers alleged that Charles Frieda took risks with their account beyond what they wanted to take. They also alleged that their portfolio was not properly diversified. This case was settled for $62,500 in damages.
  • In April 2016, a customer alleged Charles Fried made negligent financial decisions that reduced their portfolio by half. The customer claimed that their account was supposed to be invested conservatively. This case was settled for $275,000 in damages.
  • In July 2016, a customer alleged that Charles Frieda over-concentrated her portfolio in unsuitable investments. This case was settled for $287,500 in damages.
  • In January 2017, yet another customer alleged that Charles Frieda recommended unsuitable investments. This case was settled for $55,000 in damages.
  • In February 2017, a customer alleged that Charles Frieda made material misrepresentations. This case was settled for $45,000 in damages.
  • In March 2017, another customer alleged that they suffered losses due to Frieda’s recommendation to purchase investments in the energy sector. This case was settled for $750,000 in damages.

The above mentioned were just some of the complaints filed due to the alleged actions of Charles Frieda.

  • In December 2017, Charles Frieda was officially sanctioned by FINRA. This was due to his alleged numerous unsuitable recommendations to customers that they over-concentrate their portfolios in the energy sector. Due to the allegations, he was barred by FINRA from acting as a securities broker in any fashion.

What Does This Mean?

Securities brokers like Charles Frieda have a responsibility to their customers to always act in their best financial interests. This means placing their customers in suitable investments and properly diversifying their portfolios in a suitable manner. Placing investors with conservative objectives in high-risk oil and gas stocks and over-concentrating their accounts in these singular high-risk energy securities is a complete breach of a broker’s fiduciary duty. Brokers either know, or should know, that these energy securities are incredibly high risk due to the nature of the energy market. Oil and gas prices fluctuate constantly and are completely unsuitable for investors looking for stable investments.

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 Charles Frieda, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.