The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Morgan Arford. According to his publicly available FINRA BrokerCheck report, Morgan Arford has been the subject of multiple customer disputes over the course of his career.
Morgan Arford is a Washington based securities broker. He has worked in the securities industry for seven years. During his career, he has been registered with just two different securities firms.
- Geneos Wealth management (2010, 2012-2013)
- Independent Financial Group (2013-Present)
In July 2016, Morgan Arford became the subject of two identical complaints from customers alleging he recommended unapproved and unsuitable private investments in the oil and gas sector. One case was settled for $350,000. The other case was settled for $180,000 in damages. Arford became the subject of two more complaints filed in August and September 2016 with identical allegations. These cases were settled for $192,500 and $95,000 in damages respectively.
What Does This Mean?
These oil and gas investments that Morgan Arford allegedly recommended to these customers were alternative types of investments known as private placements. Private placements are overly complex, unregistered securities that do not trade on any public securities exchanges. They are very poorly regulated and leave the door open for oversight when trading these products. Many brokers take advantage of private placement’s complexity and poor regulation to misrepresent them to unsuspecting customers. These brokers often present them as safe and consistently lucrative, when, in fact, nothing could actually be further from the truth. The truth is that private placements are incredibly speculative and illiquid investments that are not suitable for investors. Despite this, many less than scrupulous securities brokers continue to recommend these products to unsuited investors because of the incredibly high commissions they receive when doing so. Broker commissions for these types of products can be as high as ten percent of the investor’s principal investment. When an investor’s principal is lowered that significantly, it makes it almost impossible for them to see any investment returns under anything besides a booming market.
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 Morgan Arford, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.