The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Erik Drewes. According to his publicly available FINRA BrokerCheck report, Erik Drewes has been the subject of multiple customer disputes over the course of his career.
Erik Drewes is a New York-based securities broker who has worked in the securities industry for twenty-eight years. During his career, he has been registered with six different securities firms.
- South Richmond Securities (1991-1995)
- Rickel & Associates (1995-1995)
- Kensington Wells Incorporated (1995-1996)
- Royce Investment Group (1996-1999)
- Milestone Financial Services (1999-2002)
- American Capital Partners (2002-present)
- In November 2014, a customer alleged that Erik Drewes had recommended unsuitable investments and over-traded their account. This case was settled for $110,000 in damages.
- In April 2020, a customer alleged that Drewes had failed to do adequate due diligence on a REIT. This case is currently pending, and the customer is seeking a total of $70,000 in damages.
What Does This Mean?
Securities brokers have a legal obligation to always act in the best interests of their customers. There are multiple different kinds of fraudulent and/or negligent acts that many less than scrupulous securities brokers partake in despite this obligation. One such act that Drewes was accused of was churning, or excessive trading. This fraudulent trading practice occurs when a broker trades a customer’s account excessively, even though it serves no actual financial benefit to the customer. Rather this act is committed with the express purpose of generating additional and/or larger commissions for themselves. Churning can be incredibly detrimental to customers due to the amount of unnecessary fees and losses they will incur. When investors lose significant amounts from their principal investment due to unnecessary fees racking up, it becomes almost impossible for them to make any profit under anything other than booming market conditions.
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 due to this fraud or negligence 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 Erik Drewes, 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.