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The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Franz Helmut Lambert. According to his publicly available FINRA BrokerCheck report, Franz Lambert had been the subject of multiple customer disputes over the course of his career. He is no longer working as a securities broker in any fashion.

Franz Lambert was a New York-based securities broker who had worked in the securities industry for seventeen years. During his career, he had been registered with sixteen different securities firms.

His Registrations 

  • Global Trading Group (2002-2004)
  • Ladenburg, Thalmann & Co. (2003-2004)
  • Newbridge Securities Corporation (2004-2006)
  • Brookshire Securities Corporation (2006-2006)
  • Investors Capital Corp (2006-2007)
  • Broad Street Securities (2008-2008)
  • Vfinance Investments (2008-2009)
  • Jesup & Lamont Securities (2009-2009)
  • Paulson Investment Company (2009-2010)
  • John Thomas Financial (2011-2013)
  • Clark Dodge & Co. (2013-2013)
  • Laidlaw & Company (2013-2015)
  • Dawson James Securities (2015-2016)
  • Legend Securities (2016-2016)
  • Worden Capital Management (2016-2019)
  • Spartan Capital Securities (Spartan Capital Securities (2019-2021)

The Allegations 

  • In July 2019, a customer alleged that Franz Lambert had breached his fiduciary duty and managed their account negligently. This case was settled for $25,998 in damages.
  • In August 2019, a customer alleged that Lambert had breached fiduciary duty, managed their account negligently, and had engaged in excessive trading while violating Iowa securities law. This case is currently pending, and the customer is seeking $781,500 in damages.
  • In September 2021, a customer alleged that Lambert had breached fiduciary duty, managed their account negligently, and had engaged in excessive trading. This case was settled for an undisclosed amount in damages.
  • In July 2022, FINRA officially sanctioned Lambert for allegedly engaging in excessive and quantitatively unsuitable trading in a senior customer’s account. As a result of these findings, Lambert was suspended in all capacities for a period of 5 months and made to pay a $5000 fine.

What Does This Mean?

Securities brokers are required to make sure that their customers’ portfolios are adequately diversified in a suitable manner. This means that their account can not solely comprise of one or two securities. If this is the case, then the success or failure of the customer’s account is entirely determined by the success or failure of those one or two investments. Investor portfolios should consist of multiple investments so that the investor does not lose everything if the value of one security plummets.

Diversity is also important in regards to the level of risk. If an investor’s account is over-concentrated in high-risk securities, then the account can be incredibly volatile. Investors with more moderate objectives need to have their portfolios diversified among investments with varying levels of risks. This means that the customer can expose some assets to moderate risk, while to still keeping most of their assets in safe 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 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 Franz Lambert, 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.