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 manner could actually be entitled to damages. The law firm of Oakes & Fosher wants to hear from investors who think this might be them.

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

Eric Niedermeyer is an Oregon based securities broker. He has worked in the securities industry for thirty years. During his career, he has been registered with six different securities firms.

His Registrations

  • Security Pacific Securities of Oregon, Inc. (1987-1989)
  • Lehman Brothers Inc. (1991-1993)
  • Piper Jaffray Inc. (1993-1998)
  • Dain Rauscher Incorporated (1998-2001)
  • D.A. Davidson & Co. (2001-2011)
  • Wells Fargo Advisors (2011-Present)

The Allegations

  • In May 2000, a customer alleged that Eric Niedermeyer failed to disclose the risks associated with margin trading. This case was settled for $7,500 in damages.
  • In July 2001, a customer alleged that Eric Niedermeyer executed an unauthorized trade and recommended unsuitable securities. This case was settled for $92,500 in damages.
  • In August 2001, a customer alleged that Eric Niedermeyer executed unauthorized trades and engaged in an unauthorized use of margin. This case was settled for $44,925 in damages.
  • In October 2018, customers alleged that Eric Niedermeyer placed them in incredibly risky investments. They also alleged that they were never told their shares could become worthless. This case is currently pending. The customers are seeking $641,271 in damages.
  • In May 2019, a customer alleged that Eric Niedermeyer misrepresented Bank of America Class B warrants. The customer also alleged that Niedermeyer never disclosed that the warrants could become worthless and that they could lose all of their principal. This case is currently pending. The customer is seeking $194,528 in damages.

What Does This Mean?

The allegations levied against Eric Niedermeyer in 2018 and 2019 construct a narrative of a broker who placed his customers in highly unsuitable investments without fully disclosing how risky they would be. Securities brokers are obligated to only recommend securities to customers that are suitable for them. Brokers are required to conduct the necessary due diligence required to determine if an investment would be suitable for a customer. They do this by analyzing factors like the customer’s investment objectives, risk tolerance, and financial situation.

Securities brokers are also obligated to disclose all the information about potential investments honestly. When a broker communicates falsified information about an investment to a customer, it is known as misrepresentation. This can be done either on purpose or by accident through the broker’s negligence. When a securities broker leaves out information, either on purpose or on accident, it is known as omission. Both misrepresentation and omission can cause investors to greatly misunderstand risks associated with investments.

Oakes & Fosher Can Help

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Eric Niedermeyer, please contact Oakes & Fosher for a free and private consultation.