The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Richard Braverman. According to his publicly available FINRA BrokerCheck report, Richard Braverman has been the subject of multiple customer disputes over the course of his career.

Richard Braverman is a Pennsylvania based securities broker. He has worked in the securities industry for thirty-seven years. During his career, he has been registered with nine different securities firms.

His Registrations

  • John Hancock Distributors (1982-1984)
  • Investors Brokerage Services (1984)
  • Eric Securities (1984-1986)
  • FSC Securities Corporation (1986-1987)
  • Hibbard Brown & Co. (1987)
  • Keogler, Morgan & Company (1987-1997)
  • Royal Alliance Associates (1997)
  • FSC Securities (1997-2008)
  • Geneos Wealth Management (2008-Present)

The Allegations

  • In July 2008, a customer alleged that Richard Braverman recommended an unsuitable annuity. This case was settled for $105,662 in damages.
  • In September 2008, Richard Braverman was permitted to resign from his position at FSC Securities Corporation following allegations that he executed unsuitable non-traded REIT transactions.
  • In December 2013, a customer alleged that Richard Braverman recommended unsuitable investments. This case was settled for $14,500 in damages.
  • In December 2016, a customer alleged that Richard Braverman recommended unsuitable non-traded real estate investments. This case was settled for $32,500 in damages.
  • In August 2018, a customer alleged that Richard Braverman breached his fiduciary duty by recommending unsuitable direct participation programs and limited partnerships. These included non-traded REITs. This case is currently pending. The customer is seeking an undisclosed amount in damages.

What Does This Mean?

Direct participation programs are privately traded investment pools that are not sold on any public securities exchanges. Because of this, there is a significant lack of oversight associated with these products. Less than scrupulous securities brokers tend to take advantage of how poorly regulated these securities are. They push these privately traded securities onto unsuspecting investors by misrepresenting them as consistently lucrative and safe investments. Despite what brokers tell their customers, DPPs are incredibly speculative and illiquid investments. The reason that these less than scrupulous securities brokers continue to recommend them so vigorously, despite how unsuitable they can be, is because of the incredibly high commissions brokers receive when the transactions are executed. Commissions for these products can be as high as ten percent of the investor’s principal investment. This commission is compounded with other upfront fees that can lead to an investor’s principal being drained of up to 17 percent in total. When an investor’s principal investment is lessened by that much, it becomes almost impossible for them to see a return on their investment under anything besides exceptional market conditions.

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 Richard Braverman, 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.