FSC Securities Corp. Father and Son Broker Duo Allen McKell and Ryan McKell Accused of Non-Traded REIT Losses
Posted on Thursday, May 23rd, 2019 at 12:22 pm
Erez Law is currently investigating FSC Securities Corp. brokers Allen McKell (CRD# 2494700) and Ryan McKell (CRD# 5386486) regarding investment losses. Allen McKell was registered with FSC Securities Corp. in Valencia, California from 2013 to 2017. Ryan McKell has been registered with FSC Securities Corp. in Valencia, California since 2014.
According to public records, in March 2019, a former client of FSC Securities Corp. filed a $100,000 FINRA arbitration against the brokerage firm related to alleged sales practice misconduct committed by Allen McKell and Ryan McKell, a father and son team. The retired widow seeks damages for unsuitable investment recommendations in non-traded real estate investment trusts (REITs). It is alleged that the former client was an unsophisticated investor and relied on the expertise of her advisors to preserve her capital and not risk principal loss of her investments.
A REIT is a company, modeled after mutual funds, that owns or finances income-producing real estate and provide investors of all types regular income streams, diversification and long-term capital appreciation. Unlike other real estate investments, REITs are often entirely illiquid. Non-traded REITs hold additional risks for investors because they often feature limited redemption programs, high fees and commissions, and internal conflicts of interest. Unlike stocks on the New York Stock Exchange, REITs are not publicly traded and cannot be sold through an exchange, only through secondary market auctions.
Allen McKell has been the subject of two customer complaints in 2005 and 2019 according to his CRD report. Ryan McKell has been the subject of this single customer complaint, according to his CRD report.
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, FSC Securities Corp. may be liable for investment or other losses suffered by Allen McKell and Ryan McKell’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.