The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Karl Foust. According to his publicly available FINRA BrokerCheck report, Karl Foust was the subject of multiple customer disputes over the course of his career.

Karl Foust was a Florida-based securities broker who worked in the securities industry for sixteen years. During his career, he was registered with five different securities firms. Foust is not currently practicing as a securities broker.

His Registrations 

  • First Jersey Securities (1981-1984)
  • Apple Financial Corporation (1984-1985)
  • Thomas James Associates (1985-1990/1992-1992)
  • Gunnallen Financial (2006-2009)
  • H.D. Vest Investment Services (2009-2014)

The Allegations 

  • In October 2017, a customer alleged that Karl Foust’s recommendation of Wimbledon Health Partner Notes was unsuitable, and that he misrepresented his association with Wimbledon Health Partners. This case was settled for $105,000 in damages.
  • In March 2018, a customer alleged that Foust’s recommendation of Wimbledon Health Partner Notes was unsuitable, and that he misrepresented his association with Wimbledon Health Partners.  This case is currently pending, and the customer is seeking $95,000 in damages.
  • In July 2018, a customer alleged that Foust’s recommendation of Wimbledon Health Partner Notes was unsuitable, and that he misrepresented his association with Wimbledon Health Partners.  This case is currently pending, and the customer is seeking $100,000 in damages.
  • In January 2019, a customer alleged Foust’s recommendation of Wimbledon Health Partner Notes was unsuitable, that he breached his fiduciary duty, managed the customer’s account negligently, and that he misrepresented his association with Wimbledon Health Partners. This case went to arbitration, and the customer was awarded $200,000 in damages.
  • In April 2019, a customer alleged that Foust’s recommendation of Wimbledon Health Partner Notes and NeuroRad Diagnostic Centers were unsuitable, and that he misrepresented his association with Wimbledon Health Partners. This case was settled for $50,000 in damages.
  • In May 2020, Foust was officially suspended by FINRA for allegedly failing to comply with an arbitration award or settlement agreement. As a result of these findings Foust was suspended from acting as a securities broker in all capacities until required payment is made.

What Does This Mean?

Promissory notes can often be unsuitable for investors. Investors that purchase these notes have officially become lenders. Their investment has served as financing for another entity and the promissory note details how much, and when, the investor is to be paid back. However, these notes often carry more risk than brokers might let on. While investing in equities, investors can monitor their portfolio’s worth and redeem their shares at any such time that they need to. However, promissory notes can be much more deceiving. The investors have a certain number in their head that they believe they will be receiving, that of principal plus interest; however, so many things can go wrong with the other party that prevents them from repaying the debt. This means the investor can be out large sums of money without any actual warning or knowledge.

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 Karl Foust, 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.