The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Darrell Rideaux. According to his publicly available FINRA BrokerCheck report, Darrell Rideaux has been the subject of customer disputes and a FINRA sanction in connection with privately traded securities outside his member firm’s scope.
Darrell Rideaux was a California based securities broker. He worked in the securities industry for three non-consecutive 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
- Signator Investors (2007-2008)
- Morgan Stanley (2013-2015)
- NMS Capital Advisors (2016-2017)
The Allegations
- In March 2016, a customer alleged that Darrell Rideaux misrepresented a non firm product. This case is currently pending. The customer is seeking $10,000,000 in damages.
- In February 2018, Darrell Rideaux was officially sanctioned by FINRA. The findings in this matter state that he failed to comply with a FINRA investigation into allegations that he solicited private placement investments that resulted in financial losses to his investors. Due to his alleged failure to comply, he was barred from acting as a securities broker in any fashion.
- In May 2018, a customer alleged that Darrell Rideaux solicited him for investment opportunities that had not been authorized by the firm. This case was settled for an undisclosed amount in damages.
What Does This Mean?
Private placements are privately traded securities that are not registered with the Securities and Exchange Commission. They do not trade on any public securities exchanges and are very poorly regulated. This gives less than scrupulous securities brokers ample opportunity to misrepresent private placements are safe and lucrative. This is done even though private placements are speculative and illiquid products that are very rarely suitable for investors. These brokers just cannot help themselves due to the excessively high commissions they receive when executing transactions involving these products. Broker commissions for private placements can be as high ten percent of the investor’s principal. This, compounded with other upfront fees, can drastically reduce an investor’s chances of seeing any investment returns.
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 Darrell Rideaux, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
