According to the Financial Industry Regulatory Authority (FINRA), Andrew Raymond Scheirer, II, a financial advisor at Kovack Securities (and previously at First Allied Securities) in Lake Mary, Florida has been the subject of multiple customer complaints. FINRA regulates the securities industry by focusing on investor protection and ensuring market integrity.
According to one complaint, Scheirer “failed to adequately advise him regarding the risk of an alternative investment. Claimant generally alleges breach of contract, fraud, negligence, and breach of fiduciary duty.” Alleged damages are $94,000.
At least four other customers filed complaints against Scheirer, alleging breach of fiduciary duty, negligent misrepresentation, fraud, breach of contract, material omissions, and unsuitability. These complaints generally appear focused on Andrew Scheirer’s sale of alternative investments and direct participation products; these may include investments such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. Three of the complaints were settled for $650,000, $30,000 and $40,000.
Alternative investment programs such as REITs and equipment leasing programs have become popular among brokers because brokers can earn commissions for the sale of such products that are far higher than those earned for the sale of more traditional products (like stocks, bonds, or mutual funds). Due to the significant risk of these investments, many states impose limitations on such programs and now limit the amount of liquid assets that can be invested in them.
Scheirer entered the securities industry in 2000 and has obtained registrations in multiple states, including Florida, Georgia, South Carolina and Virginia. He was previously “permitted to resign” from First Allied Securities in Lake Mary, Florida for allegedly violating the brokerage firm’s text messaging policy with regard to clients.
If you or someone you know invested money through Andrew Scheirer, Fishman Haygood Investment Fraud Firm’s team of experienced securities litigators can help. Our firm has helped hundreds of clients recover their losses due to broker fraud or negligence.
Fishman Haygood Investment Fraud Lawyers represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.
Of course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood Investment Fraud lawyer today.