Stoltmann Law Offices is investigating Dennis Hayes, a broker with Newbridge Securities Corporation. Hayes allegedly recommended unsuitable transactions. The claimant alleged approximately $750,000 in damages. According to her statement of claim, the client divorced her husband in 2012, after which she had $1,500,000 in assets of which $500,000 was non-qualified money and about $1 million was qualified IRA funds. The client explained to Hayes that she wanted to protect her assets while having returns to meet her immediate income needs. After transferring her funds, Hayes solicited her to invest in a gold fund called USA Gold. Hayes recommended $300,000 in USA Gold through a self-directed IRA account. USA Gold appears to be an unregistered securities offering and most likely an investment scam. Newbridge Securities failed to properly investigate Hayes for his involvement in the unregistered offering. Hayes continues to work at Newbridge, therefore, putting other clients at risk. The claimant also allegedly complained to Gene Robert Abrams, Newbridge’s General Counsel and Co-Chief Compliance Officer, that Hayes was involved in private securities transactions. This is despite multiple sources claiming and proving that Hayes was, and most likely continues to be, involved in fraudulent private securities transactions.
Other risky assets the claimant was invested in included, non-traded real estate investment trusts (REITs) such as American Realty Capital Hospitality REIT, Carter Validus Mission Critical REIT, Griffen Capital Essential Asset REIT, and Business Development Corporation of America, as well as Shopoff Land Fund IV and RCS Capital Corporation (RCAP). All of these securities and REITs are risky, unsuitable investments, that were not along the lines of the claimant’s wishes and investment objectives. A broker must take into account his client’s age, net worth, risk objectives, investment savvy and portfolio before recommending an investment, and, if he does not, his firm can be liable for investment losses by being sued in the FINRA arbitration forum on a contingency fee basis.
According to his BrokerCheck report, Hayes was registered with AAL Capital Management Corp, Veravest Investments, Equity Services, MML Investors Services, Capital Investment Group, NFP Securities and is still registered with Newbridge in Boca Raton, Florida and has been since February 2010. He has two customer disputes against him, one of which is currently pending. Please call us today if you have investments with Dennis Hayes. We may be able to help you recover your investment losses. The call is free with no obligation.