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.

featured blog image oakes fosher2

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

Robert Tweed was a California based securities broker. He worked in the securities industry for twenty-six years. During his career, he was registered with ten different firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Securities America (1993-1994)
  • Wealth Resource Capital Corporation (1994-1995)
  • Laguna Securities (1995-1997)
  • Intersecurities (1997-1999)
  • National Planning Corporation (1999-2005
  • United Securities Alliance (2005-2007)
  • Capwest Securities (2007-2011)
  • MAM Securities (2010-2011)
  • Concorde Investment Services (2011-2015)
  • Cabot Lodge Securities (2015-2019)

The Allegations

  • In June 2009, a customer alleged that Robert Tweed engaged in fraudulent misrepresentation and fraudulent concealment, made fraudulent omissions, recommended unsuitable securities, breached his fiduciary duty, engaged in elder abuse, violated State and Federal securities laws, and violated FINRA rules. This case went to arbitration where the claimant was awarded $338,000 in damages.
  • In July 2010, former customers alleged that Robert Tweed recommended unsuitable investments, breached contract, engaged in fraud, breached his fiduciary duty, and handled their account negligently. This case also went to arbitration where the claimants were awarded $156,250 in damages.
  • In June 2011, a customer alleged that Robert Tweed breached his fiduciary duty, made negligent omissions causing injury, made negligent misrepresentations of material facts, and more. This case was settled for $17,500 in damages.
  • In December 2015, a customer alleged that Robert Tweed breached his fiduciary duty, made material misrepresentations and omissions, engaged in unfair and deceptive trade practices, violated state and federal securities laws, and engaged elder abuse. This case was settled for $160,000 in damages.
  • In October 2017, Robert Tweed was officially sanctioned by the United States Securities and Exchange Commission. The findings in this matter state that Robert Tweed was complicit in twenty-two investors becoming involved in a fraudulent investment fund. Robert Tweed’s company, “Tweed Financial Services, Inc.”, formed an investment fund called the “Athenian Fund.” The main goal of this fund was to act as “feeder” fund to invest in an unrelated fund that was to employ a quantitative securities trading strategy. Robert Tweed was able to raise close to $1.7 million from twenty-two investors. It is true that Robert Tweed originally invested the raised capital into the original fund he had stated he would; however, he later moved the money into an entirely different fund (The Quantitative Analytics Master Fund) without disclosing it to the investors. This in turn placed an entirely new party in charge of the $1.7 million. Instead of investing the money in actual securities, QAMF loaned almost 40% of the of $1.7 million to a third party–not all of which was paid back. Robert Tweed then used what money he could to invest in a software business that was run by a friend of his. Neither the software company or QAMF made any kind of profit for the investors. Robert Tweed not only allegedly concealed the losses from the investors but allegedly sent falsified statements claiming that growth was actually taking place.
  • In May 2018, a customer alleged that Robert Tweed made material misrepresentations about the Vertical US Recovery Fund II. This case is currently pending. The customer is seeking $75,000 in damages.
  • In May 2019, a customer alleged that Robert Tweed recommended unsuitable securities. This case is currently pending. The customer is seeking $500,000 in damages.
  • In August 2019, a customer alleged that Robert Tweed made material misrepresentations and recommended unsuitable securities. This case is currently pending. The customer is seeking $1.4 million in damages.

What Does This Mean?

The Athenian Fund was a privately traded, unregistered security known as a private placement. Private placements can be incredibly harmful to investors for a number of reasons. These types of investments do not trade on public securities exchanges. This often leaves them very poorly regulated and gives brokers ample opportunity to misrepresent them as safe and lucrative. The truth is that these alternative investments are often incredibly illiquid and speculative and are often accompanied by incredibly high upfront fees that drain principal investments. This makes these types of investments highly unsuitable even when they are legitimate. However, like was the case with the Athenian Fund, privately placements can often just be fronts for fraudulent investment activity.

Robert Tweed allegedly invested the Athenian Fund differently than how he claimed he was going to. He allegedly misrepresented what he was going to do with invested funds and it in turn caused financial harm to the investors. Misrepresentation is a serious allegation because it can cause investors to be placed in investments that are not suitable for them–or anyone, as was the case with the Athenian Fund. When a securities broker makes material misrepresentations based on information they have wrong, it is referred to as negligent misrepresentation. This occurs when securities brokers fail to conduct the necessary due diligence that is required to know all information accurately. When a securities broker intentionally deceives customers in an attempt to get them to do something they would not do if they knew the accurate information, it is referred to as fraudulent misrepresentation. The allegations levied against Robert Tweed construct a narrative of a securities broker who is guilty of both.

Because privately placements are so poorly monitored, Robert Tweed was able to both negligently and fraudulently mislead investors without any type of hindrance. The relationship between securities brokers and investors can only exist if their is trust between the two. Securities brokers like Robert Tweed work toward the erosion of that trust and the eventual destruction of the broker/investor relationship.

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 Tweed, 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.