Investors Accuse LPL Of Alternative Investment Misconduct

Financial Arbitration

Wesley Justin Foltz of Alexandria Louisiana a stockbroker formerly associated with Prospera Financial Services Inc. and LPL Financial LLC has been referenced in a customer initiated investment related complaint on February 15, 2019 in which the customer requested $50,000.00 in damages supported by allegations that direct investments including a real estate investment trust sold by the stockbroker failed to be suitable because of the customer’s investment circumstances and the transactions Foltz effected when employed by LPL Financial led the customer to experience unwarranted losses.

This is not the first time that Foltz has been referenced in a customer initiated investment related dispute concerning accusations of the stockbroker’s improprieties in the securities industry. Particularly, Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Foltz is referenced in a customer initiated investment related complaint on November 30, 2018 where the customer sought $5,000.00 in damages based upon accusations that when Foltz was associated with Prospera Financial Services, real estate investment trust transactions were unsuitable given the customer’s investment profile.

FINRA Public Disclosure also reveals that Foltz has been fined $7,500.00 and suspended from associating with any FINRA member in any capacity based upon consenting to findings that he gave bad investment advice on annuity products. Letter of Acceptance Waiver and Consent No. 2016048637601 (Oct. 5, 2018).

According to the AWC, between April of 2013 and February of 2016, twenty-seven Sun America Polaris Choice L-share annuities had been sold to twenty-three of Foltz’s customers. FINRA stated that every customer was pitched a Sun America Income Plus rider to go along with the annuity. During this time, Foltz did not possess an adequate understanding of the products to make recommendations. In fact, FINRA stated that without having any understanding of the features and drawbacks of these investments, customers were advised by Foltz to purchase expensive contracts and riders.

FINRA indicated that Foltz did not grasp that he was recommending an L share contract which was more expensive given its lighter penalties on short term liquidations, while at the same time recommending a rider which was designed to benefit long term investors. FINRA found Foltz’s conduct violative of FINRA Rules 2010, 2111 and 2330(b)(1)(A).

Foltz’s registration with Prospera Financial Services Inc. was terminated on June 19, 2018.