The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Thomas Gresham. According to his publicly available FINRA BrokerCheck report, Thomas Gresham has been the subject of numerous customer disputes.

Thomas Gresham is a Kansas based securities broker. He has worked in the securities industry for forty-nine years. During his career, he has been registered with ten different securities firms.

His Registrations

  • Rauscher Pierce Securities Corporation (1970-1972)
  • Eastman Dillon, Union Securities & Co. (1972)
  • Blyth Eastman Dillon & Co. (1972-1980)
  • Paine, Webber, Jackson & Curtis (1980-1983)
  • Drexel Burnham Lambert Incorporated (1983-1988)
  • Rodman & Renshaw (1988-1996)
  • First Union Capital Market Corp. (1996-1999)
  • Wachovia Securities (1999-2008)
  • UBS Financial Services (2008-2012)
  • Moloney Securities (2012-Present)

The Allegations

  • In February 2001, a customer alleged that Thomas Gresham solicited them to purchase many unsuitable stocks that were speculative in nature and not the type that are normally purchased for a retirement account. This case was settled for $50,000 in damages.
  • In November 2008, a customer alleged that Thomas Gresham misrepresented and recommended unsuitable securities. This case was also settled for $50,000 in damages.
  • In October 2009, a customer alleged that Thomas Gresham invested her in unsuitable margin accounts and speculative equities. This case went to arbitration where the customer was awarded $260,000 in damages.
  • In June 2010, a customer alleged that Thomas Gresham recommended unsuitable investments. The alleged transgression taking place between 2008 and 2010. This case was settled for $225,000 in damages.
  • In May 2012, Thomas Gresham was terminated from his position at UBS Financial Services. This was due to allegations that he mismarked solicited trades as unsolicited.
  • In May 2014, customers alleged that Thomas Gresham engaged in excessive and unsuitable trading in their accounts. He allegedly charged excessive commissions and margin interest on these trades. The alleged transgressions taking place between November 2008 and December 2012. This case was settled for $30,000 in damages.
  • In June 2014, a customer alleged that Thomas Gresham excessively traded their account, recommended unsuitable products, and misappropriated their funds. This case was settled for $30,000 in damages.
  • In July 2015, Thomas Gresham received five connected complaints  from claimants alleging he made unsuitable recommendations, breached his fiduciary duties, breached the Kansas Securities Act, and engaged in unjust enrichment. These cases were settled for a grand total of $650,000 in damages.
  • In June 2017, a customer alleged that Thomas Gresham breached his fiduciary duty, engaged in fraudulent behavior, made material misrepresentations and omissions, breached contract, and much more. This case went to arbitration where the customer was awarded $370,000 in damages.
  • In December 2017, a customer alleged that Thomas Gresham excessively traded their account, engaged in unsuitable trading, engaged in fraud, handled their account negligently, and breached his fiduciary duty. This case was settled for $495,000 in damages.

Unsuitable Trading

One of the most notable allegations levied against Thomas Gresham was that he recommended unsuitable investments. Most investors lack the investment knowledge and experience to invest suitably on their own behalf. This is why investors hire securities brokers in this first place. So that they have a skilled individual telling them what securities are actually suitable for them based on their investment objectives, age, risk tolerance, liquidity needs, and financial situation. One of the most important aspects of a securities broker’s job is determining suitability based on these factors. Because of this, brokers cannot excuse themselves by claiming they were unaware of an investment’s unsuitability.

Excessive Trading

Securities brokers have an obligation to their customers to trade their accounts suitability both in the securities they recommend and the frequency in which they execute trades. When a securities broker excessively trades an investor’s account, it can result in serious financial harm to the investor. This is because it can cause the customer to incur incredibly high fees and trading losses. Despite this, many securities brokers will still engage in this excessive trading because of how much it increases their commissions. Brokers receive a percentage of a customer’s principal investment as their commission every time they execute a trade on their behalf. When a broker trades an investor’s account excessively, with the express purpose of generating more commissions, it is referred to as churning. This is a fraudulent and deceptive trading practice that in no way benefits the investor.

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 Gresham, 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.