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

Edward Rudiger is a New York based securities broker. He has worked in the securities industry for twenty-six years. During his career, he has been registered with three different securities firms.

His Registrations

  • Gruntal & Co.  (1992-1994)
  • Nichols, Safina, Lerner & Co. (1994-1998)
  • Reid & Rudiger (1999-Present)

The Allegations

  • In September 1997, a customer alleged that Edward Rudiger executed unauthorized trades on their behalf.
  • In March 1998, a customer alleged that Edward Rudiger failed to follow his instructions.
  • In December 2009, customers alleged that they purchased promissory notes on Edward Rudiger’s recommendation and that the company that issued the notes had defaulted on them. This case was settled for $294,293 in damages.
  • In July 2012, another customer alleged that a promissory note purchased on Edward Rudiger’s recommendation had become worthless after the issuing company defaulted on it. This case was settled for $700,000 in damages.
  • In June 2019, a customer alleged that Edward Rudiger excessively traded their account and made material misrepresentations of fact. This case is currently pending. The customer is seeking $279,577 in damages.
  • In October 2019, a customer alleged that Edward Rudiger made misleading statements, excessively traded their account, and breached his fiduciary duty. This case is currently pending. The customer is seeking $220,542 in damages.

What Does This Mean?

In regards to the more recent allegations made against Edward Rudiger, the most notable was that of excessive trading. This act can often cause investors to incur a high number of unnecessary fees and prevent their investments from showing desired returns. These fees occur every time a new trade is executed and can very easily rack up in a way that significantly drains the investor’s principal. Excessive trading usually occurs due to the manner in which brokers are compensated for their services. While some brokers charge a flat fee for managing an investor’s account, many brokers are compensated by receiving a percentage of the investor’s principal investment whenever executing a trade on their behalf. This percentage acts as their commission. Some less than scrupulous brokers believe they can get away with trading an investor’s account excessively to increase their own commissions even to the detriment of their customer. This is a fraudulent trading practice known as churning.

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 Edward Rudiger, 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.