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

Peter Malis was a California based securities broker. He worked in the securities industry for fifty years. During his career, he was registered with five different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Middendorf, Colgate & Co. (1969-1971)
  • Paine, Webber, Jackson & Curtis Incorporated (1971-1977)
  • Bache Halsey Stuart (1977)
  • Prudential Securities Incorporated (1977-2003)
  • Wells Fargo Clearing Services (2003-Present)

The Allegations

  • In August 1990, a customer alleged that Peter Malis made fraudulent misrepresentations, made negligent misrepresentations, breached contract, and engaged in fund conversion. This case was settled for $400,000 in damages.
  • In February 1995, customers alleged that Peter Malis purchased unsuitable municipal bonds and closed-end mutual funds on their behalf. The customers also alleged that the purchases were unauthorized.  This case went to arbitration where the customers were awarded $668,523 in damages.
  • In May 1995, a customer alleged that Peter Malis purchased unsuitable investments on their behalf. This case was settled for $12,500 in damages.
  • In September 2016, a customer alleged that Peter Malis engaged in excessive trading, unsuitable trading, churning, unsuitable account portfolio management, and unauthorized trading. This case was settled for $1.1 million in damages.

What Does This Mean?

In regards to the more recent allegations made against Peter Malis, one notable one was excessive trading. This act can often cause investors to incur a high number of unnecessary fees and prevent their investments from showing desired returns. These fees occur every time a new trade is executed and can very easily rack up in a way that significantly drains the investor’s principal. Excessive trading usually occurs due to the manner in which brokers are compensated for their services. While some brokers charge a flat fee for managing an investor’s account, many brokers are compensated by receiving a percentage of the investor’s principal investment whenever executing a trade on their behalf. This percentage acts as their commission. Some less than scrupulous brokers believe they can get away with trading an investor’s account excessively to increase their own commissions even to the detriment of their customer. This is a fraudulent trading practice known as churning.

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 Peter Malis, 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.