The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Randy Carpen. According to his publicly available FINRA BrokerCheck report, Randy Carpen has been the subject of multiple customer complaints.

Randy Carpen operated most recently as a Missouri based securities broker. He worked in the securities industry for twenty years. During his career, he was registered with seventeen different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • First United Equities Corporation (1995)
  • GKN Securities Corporation (1995-1996)
  • Biltmore Securities (1996)
  • Sovereign Equity Management Corporation (1996-1997)
  • VTR Capital Incorporated (1997-1998)
  • First Liberty Investment Group (1998-2001)
  • First Montauk Securities Corporation (2001-2002)
  • Gunallen Financial Incorporated (2002-2003, 2005-2006, 2007-2008)
  • Jesup & Lamont Securities Corporation (2008-2010)
  • EKN Financial Services (2010-2012)
  • CBG Financial Group Incorporated (2012-2013)
  • Westpark Capital Incorporated (2013-2013)
  • Newbridge Securities Corporation (2013-2014)
  • IFS Securities (2014-2015)
  • Freedom Investors Corporation (2015-2017)
  • IBN Financial Services Incorporated (2017)
  • Vestech Securities Incorporated (2017-2018)

The Allegations

  • In April 2000, a customer alleged that Randy Carpen made material misrepresentations. This case went to arbitration where the customer was awarded $50,000 in damages.
  • In June 2010, a customer alleged that Randy Carpen engaged in excessive margin trading.
  • In November 2017, a customer alleged that Randy Carpen misrepresented the actual costs of an investment purchase. The customer alleged that this this investment was unsuitable due to its associated risks. This case is currently pending. The customer is seeking $67,496 in damages.
  • In April 2019, a customer alleged that Randy Carpen executed trades in their account without authorization, made unsuitable investment recommendations, and traded their account excessively. This case is currently pending. The customer is seeking $300,000 in damages.

Unsuitable Investment Recommendations

Securities brokers are obligated to only recommend investments to customers that are suited for them. When securities brokers recommend products to customers that are not suited for them, it often results in financial loss to the customer. Securities brokers are expected to be able to discern a customer’s suitability for a particular investment by analyzing factors like the customer’s previously stated investment objectives, financial situation, liquidity needs, and risk tolerance. Brokers who invest their customers contrary to these stated factors lack the ability to perform their duties to the standard required for someone in their position.

Excessive Trading 

Securities brokers are also obligated to trade their customers’ accounts suitability in regards to the frequency in which they execute transactions. When securities brokers trade the account of a customer excessively, it can be detrimental to them. This is because the customer can incur substantial trading losses and be forced to pay an inordinate amount in fees and commissions to the broker. One of the reasons that brokers engage in this practice, despite how much it can harm their customers, is because it generates additional commissions for themselves. When a broker trades a customer’s account excessively with the express purpose of generating additional commissions, it is referred to as churning. To this day, many securities brokers continue to churn their customers’ accounts despite the fraudulent nature of the practice.

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 Randy Carpen, 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.