The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Scott Fairchild. According to his publicly available FINRA BrokerCheck Report, Scott Fairchild has been the subject of multiple customer complaints over the course of his career all in connection with illiquid investments.

Scott Fairchild is a Nevada based securities broker. He has worked in the securities industry for twenty-seven years. During his career, he has been registered with five different securities firms.

His Registrations 

  • Calvert Securities Corporation (1993-1994)
  • Linsco/Private Ledger Corp. (1994-1999)
  • SunAmerica Securities (1999-2005)
  • Sagepoint Financial (2005-2012)
  • Lucia Securities (2012-Present)

The Allegations 

  • In January 2019, a customer alleged that Scott Fairchild breached his fiduciary duty, managed their account negligently, and breached contract all in connection with him allegedly recommending they purchase illiquid alternative investments known as non-traded real estate investment trusts, or REITs. This case was settled for $175,000 in damages.
  • In December 2019, customers alleged that Scott Fairchild breached his fiduciary duty, made material misrepresentations and omissions, violated Nevada Securities Laws, and managed their account negligently by recommending high risk and illiquid alternative investments. This case is currently pending. The customers are seeking $214,335 in damages.

Alternative Investments

The term alternative investments is used to describe privately traded securities that do not trade on any public securities exchanges. These types of investments are very poorly regulated by authorities such as the SEC and FINRA. Many securities brokers use this poor regulation to their advantage as it allows them to misrepresent these securities as safe and lucrative, when, in fact, just the opposite is true. The truth is that most alternative types of investments are incredibly risky and illiquid. They are also accompanied by significant upfront fees that can severely diminish an investor’s principal investment. These types of investments are rarely suitable for investors, however, they continue to be pushed onto casual investors due to the incredibly large commissions the broker receives when the transaction is executed.

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 Scott Fairchild, please contact Oakes & Fosher for a free and private consultation. We handle cases on a contingency basis, which means there are no fees charged unless we collect for you.