Erez Law is currently investigating First Allied Securities, Inc. broker William Fox (CRD# 1522234) regarding alternative investment losses. Fox has been registered with First Allied Securities, Inc. in Austin, Texas since 2014. Previously, Fox was registered with New England Securities in Austin, Texas from 1997 to 2014.
According to public records, a former client of Fox and The Fox Alliance, which is registered with New England Securities (which is now MML Investors Services LLC) and First Allied Securities, Inc. filed a FINRA arbitration alleging that the firms failed to supervise Fox, who made recommendations to invest in alternative investments.
The claim alleged that Fox and The Fox Alliance failed to conduct due diligence before making investment recommendations to liquidate municipal bond holdings that were income-generating with alternative investments. It is alleged that Fox recommended his former clients invest more than $2 million of their retirement savings in a strategy of over-concentrating in speculative, low-quality and illiquid high-commission alternative investments, including non-traded real estate investment trusts (REITs), private placements, annuities, oil and gas investments, and equipment leasing. As a result of these recommendations, Fox earned more than $140,000 in commissions and fees, as well as an additional investment advisory fee.
Fox has been the subject of three customer complaints between 2012 and 2019, one of which was denied, according to his CRD report:
November 2019. “The customers alleged that the advisor’s recommendations to invest in Non-Traded REIT’s, private placements, equipment leasing programs, oil and gas programs, and annuities, from the early 2000’s through 2015, were misleading, misrepresented, and unsuitable.” The customer is seeking $5,000.01 in damages and the case is currently pending.
March 2016. “Claimant alleged that the advisor’s recommendation to invest in private placement REIT’s was not appropriate.” The customer sought $100,000.01 in damages and the case was settled for $70,000.
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, MML Investors Services LLC and First Allied Securities, Inc. may be liable for investment or other losses suffered by Fox’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If 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.