If you suffered investment losses investing with Charles Frieda, formerly of Wells Fargo, Morgan Stanley and Citigroup, please call 1-866-817-0201. Mr. Frieda has been found to have been reckless in his handling of investor portfolios, particularly in the recommendations of oil and gas investments.
Frieda recently entered into a regulatory settlement agreement with FINRA, the regulator that oversees securities brokerages.
FINRA Rule 2111 provides that brokers “must have a reasonable basis to believe that a recommended . . . investment strategy involving a security or securities is suitable for the customer, based on the information obtained through reasonable due diligence of the [broker] to ascertain the customer’s investment profile.”
Between November 2012 and October 2015, Frieda and another Wells Fargo representative recommended an investment strategy to more than 50 customers, which was a majority of their customers, causing the customers accounts to become significantly over-concentrated in a single sector of the overall market.
The over-concentration primarily involved four speculative oil and gas stocks. Due to the speculative nature of the recommended investments and the high level of concentration, this investment strategy was unsuitable and exposed customers to significant potential losses.
The regulatory settlement simply bars Frieda from the securities industry. Recovery of losses requires investors to contact a private attorney.
During the relevant period, in many instances, Frieda failed to properly consider and failed to obtain accurate customer investment profile information to determine the suitability of his over-concentration strategy and the securities he recommended as part of that strategy.
The CRD of Frieda, the record kept by regulators concerning wrongdoing, shows that
Frieda has been sued more that 30 times in his short career. Most of these suits concern the recommendation of unsuitable securities, such as the oil and gas securities for which he is currently under fire.
Jeffrey Pederson has represented investors across the country in similar suits to recover investment losses. Please call for more information.