Erez Law is currently investigating Wells Fargo financial advisor Keith Alva Fontenot (CRD# 2296303) regarding overconcentration in oil and gas stocks. Fontenot has been registered with Wells Fargo in Lafayette, Louisiana since 2003.
In one example of broker misconduct, a former customer and moderate risk investor turned to Fontenot to invest and maintain his irreplaceable retirement principal and generate income to sustain throughout retirement years. It is alleged that Fontenot recommended several high risk investments in the speculative, high risk oil and gas market. “Claimant alleges unsuitable recommendations were made to invest in equities.” The customer is seeking $80,000 in damages and the case is currently pending.
Fontenot recommended the client invest in the following oil and gas stocks, among others:
- Memorial Production Partners
- CVR Partners
- Alerian MLP
These and other oil and gas companies have experienced price fluctuations over the past few years, which has put financial stress on the oil and gas industry. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped.
Fontenot has also been the subject of one additional customer complaint, according to his CRD report:
May 2015. “Complaint: executor alleges recommendation to transfer client’s annuities to a new annuity was not suitable. (12/18/2012.) **Arbitration: claimants allege fa made misleading and unsuitable recommendations regarding variable annuities in their accounts beginning in 1999.” The case was settled for $400,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Wells Fargo may be liable for investment or other losses suffered by Fontenot’s customers.
Erez Law represents investors in the United States for claims against Wells Fargo financial advisor Keith Alva Fontenot, who is alleged to recommend investment portfolios concentrated in high risk oil and gas stocks. If you were a client of Wells Fargo financial advisor Keith Alva Fontenot or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.