Bill Fox (CRD#: 1522234), a registered representative with First Allied Securities, Inc. (CRD#: 32444) in Austin, Texas, is currently involved in a customer dispute over non-traded real estate investment trusts (REITs), private placements, and annuities, according to his BrokerCheck record accessed on February 4, 2020.
What happened to lead to this dispute? On November 15, 2019, a client alleged that Bill Fox recommended unsuitable investments, misled them, and misrepresented the investments. The investments included non-traded real estate investment trusts (REITs), private placements, equipment leasing programs, oil and gas programs, and annuities. The client invested in these products from the early 2000s through 2015. The matter is pending.
Bill Fox allegedly recommended several complex investment products. Although it is the broker’s duty to do due diligence before recommending any investments, investors should nonetheless educate themselves about the products before investing in anything. Why? Not all products are suitable for all investors because all investors have different investment goals given their age, income, risk tolerance, and other factors. For example, non-traded real estate investment trusts (REITs) are not suitable for investors who need easy access to the cash value of their investments because these investments cannot be traded and are thus difficult or impossible to liquidate. In the case of private placements, brokers should only recommend private placements to so-called “accredited investors” who meet certain specific federal criteria (typically a net worth of $1 million or above, or an individual annual income of $200,000 or more).
What should investors know about oil and gas investments? While it can be easy to throw caution to the wind at the prospect of “striking it rich,” it is important to be educated on oil and gas investments before taking the leap. In addition to choosing an investment professional well-versed in the world of oil and gas, investors should also educate themselves. The Securities and Exchange Commission (SEC) cautions investors to do their own due diligence in its Investor Alert entitled Private Oil and Gas Offerings.
What about annuities? Annuities, particularly variable annuities, are complex investment products that combine properties of securities and insurance. They often carry high fees and investors may not be able to access their money for many years, so annuities are not suitable for all investors.
Bill Fox has worked in the securities industry for 33 years. In addition to his current role with First Allied Securities, he has also worked for New England Securities (CRD#: 615).
If Bill Fox was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn more about your options for recovery. Call (877) 238-4175 or email firstname.lastname@example.org for your free case consultation with a securities attorney.