Securities Lawyers Blog
Advisor Anthony Hobson (Hobson), currently employed by Money Concepts Capital Corp (Money Concepts) has been subject to at least three customer complaints during the course of his career. According to a BrokerCheck report some of the customer complaints concerns alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have represented investors who suffered losses caused by these types of products.
In June 2019 a customer complained that Hobson violated the securities laws by alleging between April 2008 and November 2010, Hobson over-concentrated accounts in high-risk and speculative alternative investments. The claim alleges $218,500 in damages and is currently pending.
In January 2015 a customer complained that Hobson violated the securities laws by alleging that Hobson misrepresented a non-traded REIT. The claim was settled by the firm for $32,500.
DDPs include products such as non-traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These alternative investments virtually never profit investors and are almost always unsuitable for investors because of their high fee and cost structure. Brokers selling these products are paid additional commission in order to hype these inferior quality investments providing a perverse incentives to create an artificial market for the investments.