Securities Fraud Lawyer Blog
Allegis Investment Advisors ordered to pay investors $911,000.
On January 8, 2018 an American Arbitration Association panel issued a $911,000 binding arbitration award to clients of the Law Office of David Liebrader. The award stems from options trading losses losses suffered by the clients in 2015. The award of $911,000 was issued against Allegis Investment Advisors, a registered investment advisor based in Boise, Idaho. Allegis offered a complex options trading strategy to its clients known as a net credit spread strategy.
In August 2015 this strategy failed spectacularly, causing over $39 million in losses to Allegis’ clients. The Law Office of David Liebrader filed a AAA arbitration against Allegis Investment Advisors on behalf of six clients who lost a combined $636,000. In December 2017 an arbitration hearing was held over seven days in Salt Lake City, chaired by arbitrator James Holbrook.
After hearing for over a dozen witnesses, including expert witnesses from both sides, as well as receiving over 1000 exhibits the arbitrator issued his decision on January 8, 2018. The award found that Allegis Investment Advisors breached its fiduciary duty to four of the six clients, and awarded three of those four punitive damages in addition to a full refund of their losses. The arbitrator also awarded all four clients their attorney’s fees.
Allegis Investment Advisors was ordered to pay the clients $911,000 immediately. This amount represents nearly 200% of the clients’ net losses.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues. Typical claims that we are asked to review involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.