Rod Potratz (CRD#: 2367896), a registered representative with FSC Securities Corporation (CRD#: 7461) in Clive, Iowa, is currently involved in a customer dispute in which a client is seeking $6 million in damages, according to his BrokerCheck record accessed on February 4, 2020.
What happened to lead to this dispute? On November 21, 2019, clients alleged that Rod Potratz recommended unsuitable and inappropriate alternative investments. The clients are seeking $6 million in damages.
What should investors know about alternative investments? Also known as private placements, alternative investments can potentially provide investors with significant returns—but with these potential gains come large risks. These investments are typically only open to so-called “accredited investors” (typically individuals with a net worth of at least $1 million or an annual income of $200,000 or more). Given the risks inherent in investing in private placements, investors should only invest what they can afford to lose. Still, brokers have a responsibility to make sure that all investments are appropriate. This is called a “reasonable basis suitability analysis.”
What is suitability? Brokers can only recommend securities that are deemed suitable for a client given the client’s age, income, long-term and short-term investment objectives, risk tolerance, and other factors. It is the broker’s responsibility to do their due diligence when recommending any investment product to a client, but investors should nonetheless do their own research before investing in any securities.
Rod Potratz’s November 21, 2019 dispute is not the only disclosure on his BrokerCheck record. On December 19, 2011, a client alleged that Rod Potratz recommended unsuitable investments. The client also alleged that Rod Potratz made investments in the client’s account without her approval. The client sought $413,000 in damages; the matter was later settled.
Rod Potratz is registered to sell securities in Arizona, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Texas, and Virginia. He is registered with FINRA.
Rod Potratz has spent 26 years in the securities industry. In addition to his current role with FSC Securities Corporation (CRD#: 7461), he has also worked for AXA Advisors, LLC (CRD#: 6627) and The Equitable Life Assurance Society of the United States (CRD#: 4039).
If Rod Potratz was your broker and you have concerns about your investments, don’t hesitate to contact a securities attorney to learn about your options for recovery. Call (877) 238-4175 or email firstname.lastname@example.org for your free case consultation.