Over the last 12 years, Oakes & Fosher has tried and won more FINRA arbitration cases on behalf of individual investors than any other law firm in the country.

*Past results do not guarantee a similar outcome. The choice of a lawyer is an important decision and should not be based alone on prior results.

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Oakes & Fosher is presently investigating the alleged misconduct of securities broker Fehrman. According to his publicly available FINRA BrokerCheck report, Robert Fehrman is the subject of a pending customer dispute.

Robert Fehrman is presently operating as a Georgia based securities broker. He has worked in the securities industry for forty-four years. During his career, he has been registered with twelve different securities firms.

His Registrations

  • Merrill Lynch (1974)
  • Dean Witter & Co. (1974-1980)
  • Prudential-Bache Securities (1980-1983)
  • Westport Financial Group (1983-1989)
  • Advest, Inc. (1990-1994)
  • Texas Capital Securities (1994-1995)
  • Charlotte S. Cohen & Company, Inc. (1995-1996)
  • Sunpoint Securities, Inc. (1996-1999)
  • Pro-Integrity Securities, Inc. (1999-2004)
  • WFG Investments (2005-2012)
  • Richfield Orion International (2012-2013)
  • MSC-BD (2013-Present)

The Allegations

In April 2019, it was alleged that Robert Fehrman implemented an investment strategy that was designed to enrich himself at the expense of his elderly customers. Beginning in 2013, Robert Fehrman allegedly recommended to his customers that they put their retirement savings in high-risk and illiquid alternative investments like non-traded BDCs and limited partnerships. The customers believe that these investments were highly unsuitable for them based on their previously stated investment objectives. Robert Fehrman allegedly benefited greatly from commissions he received from executing these transactions. This case was settled for $175,000 in damages.

What Are Alternative Investments?

Alternative investments are privately traded securities that are not traded on public securities exchanges. Because of this, there is a significant lack of oversight for these products. Many less than scrupulous securities brokers use this lack of oversight to their advantage when preying upon potential investors. This is because it allows them to misrepresent these investments as safe and consistently lucrative. The truth is that alternative investments are speculative and illiquid securities accompanied by extremely high cost structures.

With publicly traded securities, an investor is able to liquidate the shares they own for the stated market value. This is because publicly traded equities have a guaranteed redemption. Alternative investments, on the other hand, operate differently. The amount an investor can receive, should they need to liquidate their shares, does not always equate to the stated market value. Thus, these products are unsuitable for investors who need the ability to liquidate their investments at a moments notice should the need arise.

Despite how unsuitable these products are, less than scrupulous securities brokers continue to recommend them because of the incredibly high commissions they receive when executing these transactions. Brokers can receive up to 10 percent of the investor’s principal investment whenever the transaction is executed. These commissions are compounded with other upfront fees that can drain an investor’s principal of as much as 17 percent. This can be detrimental to investors because when their principal investment is lowered that significantly, it becomes almost impossible for them to see a profit 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 Robert Fehrman, 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.