Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating Securities America, Inc. (Securities America) broker Randy Schneider (Schneider). According to BrokerCheck Records kept by the Financial Industry Regulative Authority (FINRA), Schneider has been subject to nine customer disputes. The majority of these customer disputes revolve around the unsuitable recommendation of alternative investments, annuities and REITs.
Most recently, in February 2015, a customer alleged that Schneider stole and misappropriated funds in the customer account and also misrepresented the nature of the AXA annuities by providing misleading information. The customer requested $160,000 in damages.
In June 2013, a customer alleged that from November 2007 to June 2008, Schneider misrepresented the nature of certain alternative investments that were unsuitable for the customer. The case was settled at $250,000.
In September 2011, a customer alleged that Schneider unsuitably recommended an alternative investment and misrepresented the facts of the investment. This dispute was settled at $38,750.
Our firm often handles cases involving direct participation products, private placements, Non-Traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These products are almost always unsuitable for middle class investors. There are several problems with these products. First, studies have shown that non-traded REITs have historically have underperformed even safe benchmarks, like U.S. treasury bonds – meaning that non-traded REITs provide paltry investment returns considering the risk an investor takes. Alternative investment products like oil and gas partnerships, REITs, and equipment leasing programs are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed at all
Brokers must make investment recommendations that are suitable and match the needs of their client. For an investment to be suitable, a certain criteria has to be met; there must be a reasonable basis for the recommendation for the investment based upon the broker’s and the firm’s investigation and due diligence into the investment, and the broker must match the investment as being appropriate for the customer’s specific investment needs and objectives. Common due diligence requires for the broker to look into the investment’s properties including its benefits, risks, tax consequences, the issuer, the likelihood of success or failure of the investment, and other relevant factors.
Schneider entered the industry in 1994 and has been registered with Securities America since January 2006. From July 1999 to September 2005, Schneider was registered with Roulston Research Corp. From July 1998 to July 1999, Schneider was registered with Prudential Investment Management Services LLC. From July 1994 to September 1996, Schneider was registered with Natcity Investments, Inc. From January 1994 to October 1994, Schneider was involved in National City Investments Corporation.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of unsuitable investment recommendations and false representations. Our consultations are free of charge and the firm is only compensated if you recover.