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

Heath Bowen was an Idaho based securities broker. He worked in the securities industry for thirteen years. During his career, he was registered with five different securities firms. He is not currently working as a registered securities broker in any fashion.

His Registrations

  • Equity Services (2004-2007)
  • Beneficial Investment Services (2007)
  • LPL Finacial (2007-2011)
  • Signator Financial Services (2011-2014)
  • Allegis Investment Services (2014-2018)

The Allegations

  • In September 2017, a customer alleged that the options strategy implemented in his account by Heath Bowen was unsuitable and there were misrepresentations regarding said strategy. This case is currently pending. The customer is seeking $456,529 in damages.
  • In December 2017, customers alleged that Heath Bowen breached contract. This case went to arbitration where the customers were awarded $575,000 in damages.
  • In March 2018, a customer alleged that Heath Bowen implemented an unsuitable options trading strategy. This case is currently pending. The customer is seeking $121,672 in damages.
  • Heath Bowen was eventually suspended indefinitely from acting as a securities broker in any fashion after failing to comply with the above mention arbitration award.

What Does This Mean?

Options trading is an incredibly complicated trading strategy that very few investors actually understand. Because of this, it is almost always up to the discretion of the securities broker regarding whether or not this strategy is suitable for their customer. Essentially, options trading is two parties betting against each other regarding the potential success or failure of a particular security. The party in the short position agrees to to buy a sell a security from the party in the long position, depending on whether it was a call or put option, at a previously agreed upon strike price by the option’s expiration date. The product is to be bought or sold at that strike price should the party in the long position demand it despite whatever it may be currently valued at. This can be incredibly risky for investors placed in the short position. While they are paid a premium for taking on the risk by the other party, should the value of the security increase drastically in a call option, or decrease drastically in a put option, the party in the short position can be on the hook for a significant amount of money depending on how much the security’s value has changed from the predetermined strike price.

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 Heath Bowen, please contact Oakes & Fosher for a free and private consultation.