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

Thomas Burns was a California based securities broker. He worked in the securities industry for fifty years. During his career, he was registered with seven different securities firms.

His Registrations

  • Dupont Walston & Co. (1968-1974)
  • Sutro & Co. Incorporated (1974-1981)
  • First Wilshire Securities Management (1981-1982)
  • Titan/Value Equities Group (1982-1999)
  • IDM Securities Corporation (1985-1986)
  • Mutual Service Corporation (1999)
  • Crown Capital Securities (1999-2019)

The Allegations

  • In February 1995, a customer alleged that Thomas Burns misrepresented material details, violated suitability rules, and breached his fiduciary duty. This case was settled for $30,000 in damages.
  • In August 1997, a customer alleged that Thomas Burns misrepresented material details and recommended unsuitable securities. This case was settled for $20,000 in damages.
  • In September 2000, a customer alleged that Thomas Burns executed unsuitable transactions. This case was settled for $35,000 in damages.
  • In August 2012, a customer alleged that Thomas Burns executed unauthorized trades in her account, forged her signature on an option agreement, and altered suitability information on her account. This case was settled for $15,000 in damages.
  • In February 2019, Thomas Burns was officially sanctioned by FINRA. The findings in this matter state that Thomas Burns made numerous mistakes when reporting customer assets when trying to determine if they were suited for alternative investments. He negligently double counted assets and thus invested customers in alternative investments that were not suitable for them.

What Does This Mean?

The term alternative investments is used to describe privately traded securities not sold on any public exchanges. Due to their private and complex nature, some less than scrupulous securities believe they can get away with misrepresenting these products as safe and consistently lucrative. The truth is that alternative investments are speculative and illiquid products that are unsuitable for most investors. When recommending these products, some brokers will even fraudulently or negligently inflate a customer’s net worth so their member firms then mistakenly believe said customer is suited for that particular private security. This misrepresentation, whether negligent or fraudulent, can cause significant financial harm as it can lead to individuals being placed in alternative investments they are woefully unsuited for.

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 Thomas Burns, 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.