Articles Tagged with Arete Wealth Management

Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from alternative investments. Some brokers like to pitch investors on the idea of making a lot of money by investing in alternative investments, mostly because brokers get paid handsome commissions for selling them.  GPB Capital and more recently, GWG Holdings are examples of alternative investments that were pushed hard by brokerage firms, with terrible results. There is a sub-category of these investments called “liquid alternative”, which are complex and costly for clients.

FINRA, the U.S. securities industry regulator, recently issued a warning about liquid “alts,” which invest in assets “other than stocks and bonds — such as real estate, commodities and derivatives — to give retail investors exposure to alternative investments in a vehicle that can be traded daily. They are touted as a way to beat market returns but also can be risky and expensive.”

“While these funds may be appropriate for some investors,” the regulator’s warning stated, “FINRA has consistently emphasized the importance of member firms’ sales practice obligations for these and other products, especially when such products may carry additional risks for customers.” These products are inappropriate for investors unless their objective is speculation – plain and simple.

Stoltmann Law Offices, a Chicago-based investor rights and securities law firm, has been representing investors in cases against brokerage firms that sold the private placement limited partnership offerings in several GPB Funds, including:

  • GPB Automotive Fund
  • GPB Holdings Fund II

AdobeStock_762441-1-300x225Financial Industry Regulatory Authority (FINRA) records indicate that Clayton, Missouri-based Arete Wealth Management broker Alvery Bartlett has been involved in pending or resolved customer disputes. Mr. Bartlett allegedly misrepresented and recommended unsuitable investments between 2012 and 2014. He also allegedly misrepresented and recommended unsuitable investments in oil and gas securities and tenant-in-common (TIC) interests. These are not suitable for all investors because they can be highly risky and illiquid investments. A broker must take into account a customer’s age, net worth, investment objectives and investment risk tolerance before recommending or selling an investment. If he does not, his brokerage firm may be liable for losses on a contingency fee basis in the FINRA arbitration forum. The firm has a duty to reasonably supervise its brokers while they are registered there.
Alvery Bartlett was previously registered with Clayton Brokerage Co. of St. Louis, Alvery Bartlett Brokerage, Derand/Pennington/Bass, Mark Twain Brokerage Services, The Bartlett Fund Management Co. and Berthel, Fisher & Company. He is currently registered with Arete Wealth Management in Clayton, Missouri, and has been since August 2016. He has two customer disputes against him, one of which is currently pending. This is all according to his online, public BrokerCheck report with FINRA.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Robert B. Silva, a former registered representative with Arete Wealth Management, allegedly engaged in outside business activity while registered there. Silva as the owner and sole officer and director of Premier Standard Equities Inc. Between January and February 2015, Silva, acting through Premier, demanded payment for forensic analysis he conducted, prior to joining Arete, of an individual’s investment portfolio held at another FINRA member and pension plan assets, with the expectation of receiving compensation in the amount of $10,000. For this he was suspended for 20 business days and fined $5,000.

Silva was registered with First Allied Securities in Pasadena, California from January 2007 until March 2009, Western International Securities in Pasadena from March 2009 until August 2012, GBS Financial Corp in Pasadena from July 2012 until December 2013, Arete Wealth Management in Chicago, Illinois from December 2013 until March 2015, MS Howells & Co. in Scottsdale, Arizona from April 2015 until April 2015 and Newport Coast Securities in New York, New York from October 2015 until November 2015. He has one customer dispute against him and is not licensed within the industry. Please call our Chicago-based law offices today to speak to an attorney about your options of recovering financial losses.

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