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

Robert Scott Smith is an Oregon based securities broker. He has worked in the securities industry for thirty-two years. During his career, he has been registered with seven different securities firms.

His Registrations

  • Merrill Lynch (1985-1990)
  • A.G. Edwards & Sons, Inc. (1990-1993)
  • Allmerica Investments (1993-1994)
  • Toluca Pacific Securities Corp. (1995-1996)
  • Brookstreet Securities Corporation (1996-2007)
  • Pacific West Securities (2007-2011)
  • Concorde Investment Services (2011-Present)

The Allegations

  • In November 2011, a customer alleged that Robert Scott Smith recommended an unsuitable security and over-concentrated their account in said security.
  • In April 2013, a customer alleged that Robert Scott Smith misrepresented material details, recommended unsuitable securities, and breached his fiduciary duty. This case was settled for $27,000 in damages.
  • In July 2019, a customer alleged that Robert Scott Smith unsuitably and negligently recommended that they invest in private placements. This case was settled for $280,000 in damages.
  • In December 2019, a customer alleged that Robert Scott Smith recommended highly unsuitable alternative investments, committed fraud, and managed their account negligently. This case is currently pending. The customer is seeking $95,000 in damages.
  • In January 2020, a customer alleged that Robert Scott Smith managed their account negligently, breached his fiduciary duty, violated the Oregon Securities Act, and breached contract in connection with various GPB alternative investments. This case is currently pending. The customer is seeking $647,500 in damages.
  • Also in January 2020, a customer alleged that Robert Scott Smith violated the Nebraska Securities Act, breached his fiduciary duty, managed their account negligently, and made negligent misrepresentations in connection with GPB alternative investments. This case is currently pending. The customer is seeking $200,000 in damages.
  • In April 2020, a customer alleged that Robert Scott Smith recommended unsuitable investments, breached contract, committed fraud, breached his fiduciary duty, managed their account negligently, and violated Oregon securities laws related to private placement purchases. This case is currently pending. The customer is seeking $360,000 in damages.

Private Placements

Private placements are privately traded securities that are not sold on any public securities exchanges or registered with the Securities and Exchange Commission. Private placements are very poorly regulated due to their private nature and are only supposed to be recommended to what are known as “accredited” investors. This is an individual with a net worth of $1 million or an annual income of $200,000. Any securities broker that has recommended a private placement to an investor who does not qualify as accredited has violated the terms of the private placement’s exemption. Many less than scrupulous securities brokers utilize the lack of regulation associated with private placements to misrepresent these investments as safe and consistently lucrative, which is completely untrue. The truth is that private placements are highly speculative and illiquid securities. Despite this, many securities brokers will still recommend them because of the incredibly high commissions they receive when doing so. Broker commissions for these products can be as high ten percent of the investor’s principal investment. These commissions compounded with other upfront fees can drain an investor’s principal of up to 17 percent. When an investor’s principal is lowered that substantially right off the bat, it becomes near impossible for them to see any investment returns under anything other than 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 Robert Scott Smith, please contact Oakes & Fosher for a free and private consultation. Oakes & Foshr handles cases on a contingency basis, which means there are no fees charged unless we collect for you.