Super Lawyers
AVVO
Million Dollar Advocates Forum
Martindale-Hubbell
BBB Accredited Business

Eric Niedermeyer Sued for Misrepresenting Warrants

iStock-506822830-300x200Eric Niedermeyer (CRD#: 1680870), a registered representative with Wells Fargo Advisors Financial Network in Portland, Oregon, is currently involved in a pending customer dispute, according to his BrokerCheck record accessed on August 13, 2019. In the dispute, filed on May 20, 2019, a client “alleges the Bank of America Class B warrants were misrepresented and client was not informed he could lose all of his invested principal.” Warrants allow an investor to buy shares at a predetermined price at a defined point in the future. Warrants can increase the returns on a stock investment—but that also means they can increase the losses. The client is requesting $194,528.20 in damages. Eric Niedermeyer is also involved in another pending dispute, filed on October 19, 2018, in which a client alleges he “placed their funds in risky investments and that they were not told the warrants could become worthless.”

On August 21, 2001, a client claimed that “unauthorized trades were made in his account and that margin was utilized without his consent.” The client requested $66,200 in damages, but the case settled for $44,925. Unauthorized trading refers to trades made by a broker without an investor’s consent. Brokers who engage in unauthorized trading often do so to generate extra commissions. Using margin refers to the act of borrowing money from one’s broker-dealer to invest in new securities, using the securities in one’s account as collateral.

Eric Niedermeyer became involved in two disputes on the same day, July 12, 2001. One client, who was initially requesting $165,000 in damages, alleged that “one unauthorized trade was made in his account.” He also alleged that Eric Niedermeyer recommended unsuitable securities. Eric Niedermeyer’s firm, Dan Rauscher Incorporated, settled that customer dispute for $92,500. Similarly, a client alleged that “one unauthorized trade was made in their account” and that Eric Niedermeyer recommended unsuitable securities. This client originally requested $70,000 in damages, but the firm settled for $30,000. In both cases, the investment products at issue were OTC (Over-the-Counter) Equity.

After a client alleged on May 8, 2000 that “unauthorized trades were made in her account” and that “she was not fully advised as to the risks of trading on margin,” Eric Niedermeyer and his firm, Dan Rauscher Inc., settled the claim for $7,500. The client originally requested $12,000 in damages.

In addition to his current position at Wells Fargo Advisors Financial Network, LLC, over his 30-year career in the securities industry, Eric Niedermeyer has worked for the following firms:

  • A. Davidson & Co. (CRD#: 199) of Portland, Oregon
  • Dain Rauscher Incorporated (CRD#: 31194) of New York, New York
  • Piper Jaffray Inc. (CRD#: 665) of Minneapolis, Minnesota
  • Lehman Brothers Inc. (CRD#: 7506) of New York, New York
  • Security Pacific Securities of Oregon, Inc. (CRD#: 13120)

If you’ve done business with Eric Niedermeyer or have questions about unauthorized trades or trading on margin, don’t hesitate to reach out to an experienced securities attorney. Call (877) 238-4175 or email info@fkesq.com for your free consultation with Jonathan Kurta and Marc Fitapelli.

Contact Information