The law firm of Oakes & Fohser is presently investigating the alleged misconduct of former securities broker Eric Savell. According to his publicly available FINRA BrokerCheck report, Eric Savell has been the subject of a customer complaint and a FINRA sanction.
Eric Savell was a California based securities broker. He worked in the securities industry for fourteen years. During his career, he was registered with two different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Fidelity Brokerage Services (2001-2012)
- LPL Financial (2012-2017)
The Allegations
Eric Savell was officially sanctioned by FINRA in July 2019. The findings in this matter state that he recommended that one of his customers liquidate her account and purchase over $160,000 of privately traded promissory notes. The customer has alleged that this investment was highly unsuitable and is seeking a return of her investment plus interest. Due to his alleged actions, he was suspended from acting as a securities broker for a period of five months and fined $10,000.
What Does This Mean?
Securities brokers are not allowed to recommend privately traded securities to their member firm customers without first obtaining their member firm’s authorization. This is because privately traded securities can often be highly unsuitable for investors. Also there can often be significant conflicts of interests that take place in these instances. Sometimes, the securities broker can have a financial stake in the private security they are recommending. Other times they may be receiving cash kickbacks from a third party in order to recommend said privately traded security. Most of the time, however, securities brokers that recommend privately traded securities with an ulterior motive do so because of the incredibly high commissions they receive when the transactions are executed. It is the responsibility of the securities firm to prevent investors from being harmed by these types of investments. The firm is not absolved from liability simply because the broker fails to communicate their intent to engage in these transactions. The securities firm must have adequate procedures in place designed to supervise its registered brokers and prevent them from engaging in any unauthorized and potentially harmful activities.
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 Eric Savell, 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.
